Oil rate dips to four-year low

(MENAFN) Oil prices dropped over 3% on Monday, extending last week's losses, as rising US-China trade tensions fueled concerns about a potential recession, which could reduce demand for crude oil. Brent crude futures for June 2025 delivery fell below $64 per barrel, marking a four-year low. Brent dropped $2.28 to $63.30, while US West Texas Intermediate (WTI) decreased by $2.20 to $59.79, both reaching their lowest levels since April 2021.

The downturn began after US President Donald Trump imposed sweeping tariffs on all US trading partners, including China, the world’s largest oil importer. Despite energy being exempt from the tariffs, markets quickly reacted, with oil prices plunging 7% on Friday after China retaliated with its own tariffs on US goods. This escalation led to recession fears, sending Brent crude down 10.9% and WTI down 10.6% for the week, one of the sharpest losses in recent months.

Analysts warned that oil prices may continue to slide unless market panic subsides, with concerns that the broader economic impacts of the trade war could ignite inflation, slow growth, and deepen trade tensions. Meanwhile, OPEC+ announced plans to fast-track production increases in May, adding 411,000 barrels per day, a move reflecting the current stability in the oil market despite price declines.

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