FX.co ★ Oil Prices Fall as Tariff Turmoil Spurs Fuel Demand Fears

WTI crude futures experienced a turnaround, sliding back to $61 per barrel—their lowest since April 2021—following unfounded speculation regarding a 90-day halt to the new US tariff policy. The initial uptick in prices, where they momentarily surpassed $63, was fueled by optimism for a postponement of the tariffs scheduled for implementation on Wednesday. Once this rumor was dispelled, the market promptly adjusted. Investors remain jittery amidst increased volatility, as concerns mount that the intensifying trade conflict could impede global economic growth and dampen energy consumption. Last week, WTI registered its most significant weekly decline in two years after President Trump unveiled broad new tariffs, which triggered Chinese retaliation and heightened the threat of a global economic deceleration. Concurrently, Saudi Aramco's recent price reductions and the unexpected production increase by OPEC+ continue to exert downward pressure on the market outlook.