Oil prices tumbled to fresh four-year lows on Wednesday, as sweeping new tariffs introduced by United States President Donald Trump against dozens of countries raised fears of a global economic slowdown and sharply weakened sentiment in commodity markets.
By 2:30 pm AEST (4:30 am GMT) Brent crude futures declined $2.43, or 3.9%, to $60.39 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $2.36, or 3.96%, to $57.06.
The tariffs include a 104% duty on imports from China, along with additional double-digit levies on a broad group of U.S. trading partners.
ANZ analysts noted: "The push back from Beijing sets the scene for further escalation between the two biggest economies in the world, which weighed on sentiment across the commodities complex."
The oil sell-off has intensified over five consecutive sessions following Trump’s announcement of wide-ranging tariffs, sparking fears of a prolonged global trade war that could curb economic activity and depress fuel consumption.
Further pressuring oil markets was last week’s announcement from OPEC+ - a coalition of the Organisation of the Petroleum Exporting Countries and its allies, including Russia - that it would increase output by 411,000 barrels per day starting in May.
However, fresh data from the American Petroleum Institute revealed that U.S. crude inventories fell by 1.1 million barrels in the week ended April 4.
Market participants now await official figures from the U.S. Energy Information Administration, scheduled for release later in Wednesday's session (Thursday AEST).
