The US light sweet crude benchmark WTI fell by as much as 9pc this morning after China retaliated to the US' latest tariff action, while a selloff in global equity markets deepened.
May Nymex WTI traded as low as $60.81/bl Friday morning, a more than $6/bl tumble from the settled price in the session before when it gave up $4.76/bl. Prompt month WTI has not been this low since 13 April 2021 when it settled at $60.18/bl.
Prices across commodities and equities are down sharply after China on Friday said it will impose a 34pc tariff on all imports from the US from 10 April, a retaliation for new tariffs launched by US president Donald Trump on 2 April.
China faces a 34pc import tariff from 9 April, on top of the 20pc tariffs Trump has imposed over the past two months.
The prompt-month WTI contract has given up more than $10/bl, or 17pc, in the two days since Trump announced that dozens of countries would be subject to "reciprocal" tariffs, prompting serious concerns over lower global economic growth and a higher chance of a recession.
The IMF say tariffs represent a "significant risk" to the global outlook while US-based bank Goldman Sachs said Friday it has cut its oil demand growth estimate for this year to 600,000 b/d from 900,000 b/d, based on its economists' new view of economic growth.
Adding price pressure this week has also been the unexpected plans by eight Opec+ members to unwind production cuts faster, upping output in May by 411,000 b/d.
Turmoil continued for the second-straight day in equity markets, with the S&P 500, Dow Jones Industrial Average and Nasdaq all down between 3-5pc so far.
