The trade tariff war unleashed by Donald Trump has caused the biggest one-month drop in global oil prices in three and a half years.
Points of attention
- This is the biggest drop in global oil prices since November 2021.
- Brent crude futures fell 49 cents, or 0.8%, to $63.76 a barrel.
Trump has crashed world oil prices
As of 10 a.m. GMT on April 30, Brent crude futures fell 49 cents, or 0.8%, to $63.76 a barrel.
U.S. West Texas Intermediate crude futures fell 40 cents, or 0.7%, to $60.02 a barrel.
Overall, during April, both oil brands fell in price by approximately 15% and 16%, respectively.
This is the biggest drop since November 2021.
Analysts directly link the drop in oil prices to the new US tariff policy announced on April 2, which imposed additional duties on all imports to America. The effect was amplified by countermeasures taken by China in response.
Analysts surveyed by Reuters predict that Trump's tariffs have made it likely that the global economy will slide into recession this year. In April, factory output in China fell at its fastest pace in 16 months.
An additional factor that lowered oil prices was the expectation of increased production by OPEC+ countries. Production is expected to increase in May, and possibly in June.
