Oil tumbles 8% below $65 as China retaliates with tariffs on US | World News
Oil prices plunged 8% on Friday, heading for their lowest close since the midst of the coronavirus pandemic in 2021, after China hit back with tariffs in response to US President Donald Trump’s own barrage of levies this week.
China announced it will impose additional tariffs of 34% on all US goods from April 10. Nations around the world have readied retaliation after Trump raised tariff barriers to their highest in more than a century, leading to a plunge in world financial markets.
Brent futures dived $5.72, or 8.2%, to $64.62 a barrel 1231 GMT. US West Texas Intermediate crude futures lost $5.90, or 8.8%, to $61.05.
Story continues below this ad
Both benchmarks were on course for their biggest weekly losses in percentage terms in more than two years.
“China’s aggressive countermove to US tariffs all but confirms we are heading towards a global trade war; a war that has no winners and which will hurt economic growth and demand for key commodities such as crude oil and refined products,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Fuelling the oil sell-off was a decision the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, to advance plans for output increases, with the group now aiming to return 411,000 barrels per day (bpd) to the market in May, up from the previously planned 135,000 bpd.
