Oil slumps ahead of tariffs, Brent nears $60/bl

Market: Crude oil
09/04/25

Crude oil futures fell further in Asian trading today, hours before new US tariffs on imports from a range of key trading partners are due to take effect.

Benchmark WTI and Brent futures each fell by more than 4pc in early trading to hit new four-year lows.

The front-month June Brent contract on Ice fell by as much as 4.2pc to a low of $60.18/bl. Brent has not traded below $60/bl since February 2021.

The Nymex front-month May crude contract fell by 4.8pc to a new four-year low of $56.70/bl.

At today's lows, both benchmark contracts have now fallen by 20pc since US president Donald Trump announced his tariff plans on 2 April.

Trump's so-called "reciprocal" taxes on imports from selected trade partners are due to come into force at 12.01am ET (05:01 GMT) on 9 April. Trump's 10pc baseline tariff on imports from nearly every foreign country already went into effect on 5 April.

Cumulative tariffs on US imports from China imposed since Trump returned to power will rise to 104pc, after Trump this week added 50pc to previously announced rates.

By Kevin Foster

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US states including New York sue Trump over tariffs

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Tariffs could cut FY profit $100mn-$200mn: Baker Hughes

23/04/25

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23/04/25

Tariffs could cut FY profit $100mn-$200mn: Baker Hughes

New York, 23 April (Argus) — Oilfield services giant Baker Hughes expects a cut in its annual profit of as much as $200mn from tariffs, if current levels applied under President Donald Trump's 90-day pause stay in place for the rest of the year. That hit to profits does not include secondary effects, such as the impact of Trump's trade wars on slower global economic growth, as well as a renewed bout of weakness in oil prices. While the company is taking steps to mitigate tariff impacts, its "strong weighting" to international markets helps reduce its overall financial exposure, according to chief executive officer Lorenzo Simonelli. Increased oil price volatility due to tariffs , as well as the return of Opec+ barrels to the market, have resulted in a softening outlook for the market. As such, Baker Hughes now expects global upstream spending will be "down by high single digits" this year. The company forecasts a low-double digit decline in North America spending by its clients, and a mid-to-high single digit drop internationally. "A sustained move lower in oil prices or worsening tariffs would introduce further downside risk to this outlook," said Simonelli. "The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels." The company has identified three areas of tariff exposure within its industrial and energy technology division, including volumes exported to China, critical equipment supplies from its facilities in Italy, and an expected modest impact from steel and aluminum tariffs as well as US-China trade activity. Mitigation efforts include exploring domestic procurement alternatives to reduce input costs and improving its global manufacturing footprint. In relation to its oilfield services and equipment segment, Baker Hughes has been working to boost domestic sourcing and is working with customers to recover some costs. Elsewhere, the repeal of an US LNG permitting moratorium under the Trump administration has resulted in higher orders. Baker Hughes has booked about $1.7bn in LNG orders in the US over the past two quarters, and several LNG customers in the Gulf Coast have signaled plans to expand capacity beyond 2030. Profit of $402mn in the first quarter was down from $455mn in the year-earlier period. Revenue held steady at about $6.4bn. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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23/04/25

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23/04/25

US wants IMF, World Bank to drop climate focus

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India, Saudi Arabia to establish two Indian refineries

23/04/25

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23/04/25

India, Saudi Arabia to establish two Indian refineries

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FERC commissioner Phillips resigns from agency

22/04/25

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22/04/25

FERC commissioner Phillips resigns from agency

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