FX.co ★ Oil Slumps to 4-Year Low

Brent crude oil futures experienced a significant decline of 6%, approaching $59 per barrel, marking the lowest level observed since February 2021. This decrease was largely driven by concerns surrounding a potential global economic slowdown, impacting energy markets. The downturn was exacerbated by the intensification of the trade conflict between the United States and China. President Trump implemented substantial new tariffs on multiple nations, including a 104% duty on numerous Chinese imports. In retaliation, China significantly increased its tariffs on US goods to 84%, effective from April 10. Concurrently, OPEC+ announced an unexpected acceleration in oil production, heightening the potential risk of an oversupply in the market. Additionally, data from the American Petroleum Institute indicated that US crude inventories had decreased by 1.1 million barrels in the week ending April 4, contrary to prior forecasts of a 1.4 million barrel build.