Oil Prices Crash Below $60 as Tariff War Reaches Boiling Point

If you check live prices on Saturdays, you will always see the last recorded WTI crude price from the previous Friday. In December 2005 the global demand for crude oil was 83.3 million barrels per day according to the International Energy Agency (IEA) and this will continue to rise further. We also explain what oil blends are (like Brent and WTI), and ways you can speculate on live crude oil spot prices without having to buy physical barrels. The commodity of crude oil is by far the world’s most important energy source and the price of oil therefore plays an important role in industrial and economic development. The most important type of crude oil used in Europe is Brent Crude, named after the North Sea oilfield where it is extracted. Brent Crude is a particularly light crude oil which is carried from the North Sea to the Sullom Voe Terminal on Mainland, Shetland by an underwater pipeline.

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With oil prices already battered, the EU’s retaliation could further weaken global demand. The escalation of the U.S.-China trade war—marked by China’s new 84% tariffs on U.S. goods effective April 10—fueled the selloff, driving Brent to $59 and WTI to $56, both down from last week and the lowest in years. According to Federal Reserve Bank of Dallas’ most recent energy survey, oil producers require an average price of $65 a barrel to profitably drill, with nearly 60% requiring prices to be higher. Discover the latest crude oil price and trace the historical value of the commodity over the years with Capital.com’s chart. Spot the best trading opportunities with the interactive crude oil price graph and numerous technical indicators at Capital.com.

JPMorgan best 5 cryptocurrencies to invest in the 4th quarter of 2019 also lifted its recession forecast last week to 60% on trade war angst. The International Energy Agency said on Tuesday that global oil demand will grow at its slowest for five years in 2025. Oil prices rose more than $1 a barrel today on concerns about global supplies after Washington issued new sanctions targeting Chinese importers of Iranian oil.

Brent Crude Soars Back Above $63 as Trump Delays Tariffs

• So the extraction process, machinery and capital required are different.
• These exchanges offer electronic trading platforms where traders can execute transactions and manage their positions.
• April 4, 2025China responds to the 54% U.S. rate by announcing a 34% tariff on all U.S. imports, effective April 10.
• WTI futures contracts are typically settled through physical delivery.
• WTI is a benchmark that serves as a reference price for sellers and buyers of crude oil across the United States.

Also known as West Texas Intermediate (WTI) or Texas light sweet, it is a popular investment tool used by international investors seeking true asset class diversification in their portfolio. The commodity is often seen as a hedge against any financial uncertainty, inflation, deflation or currency devaluation. WTI and Brent oil futures are primarily traded on major futures exchanges, such as the New York Mercantile Exchange (NYMEX) for WTI and the Intercontinental Exchange (ICE) for Brent.

What factors influence the prices of WTI and Brent oil futures?

In addition, as with any other traded commodity, its value depends on the basic laws of supply and demand. For example, when supplies are tight, you can expect the price of oil to rise. During the following years, it had climbed steadily until it reached its all-time high of more than $147 a barrel in mid-2008. However, the bullish trend reversed in the second half of the same year, with the crude oil spot price falling as low as $37.80 a barrel in early 2009.

U.S. Oil Production Cuts May Be Avoided

“A de-escalation of the trade war between the US and China would reduce the downside in economic growth prospects and limit the downside for oil demand growth,” said UBS analyst Giovanni Staunovo. WTI is a benchmark that serves as a reference price for sellers and buyers of crude oil across the United States. Due to its relatively low density and low sulphur content, it is generally considered lighter and sweeter than Brent, making it ideal for gasoline refining.

These are standardised products used to determine the prices for all other types. The reference 20 50 and 200 day moving average oil traded most frequently and of major significance for the USA is West Texas Intermediate (WTI), while the most important in Asia is Dubai Fateh. Other reference oil types include Leona, Tijuana, Alaska North Slope, Zueitina or Urals.

• With WTI at $56 and Brent at $59, the bloodbath shows no signs of slowing.
• Other reference oil types include Leona, Tijuana, Alaska North Slope, Zueitina or Urals.
• Silver climbed nearly 21.4% to $30.32 per ounce, while copper snapped a five-day slide, up 1.97% to $4.23 per pound.
• Goldman Sachs lifted its recession odds to 45% this week, citing tariffs as the main reason.

Japan and Canada Look to Stabilize Markets

Live charts, historical data, futures contracts, and breaking news on WTI prices can be found below. Today’s Brent crude oil spot price is at $67.68 per barrel, down by 0.00% from the previous trading day. In comparison to one week ago ($64.71 per barrel), Brent oil is up 4.59%. In general, the US crude oil rate significantly relies on the wider performance of the US economy.

With WTI at $56 and Brent at $59, the bloodbath shows no signs of slowing. “You’ll see more credit problems,” he cautioned, urging swift trade talks to stabilize markets rocked by tariff chaos. Speaking to Fox Business on Wednesday, Dimon highlighted “recessionary talk” and predicted borrower defaults as rates rise, inflation sticks, and credit spreads widen. The European Union has joined the fray, approving its first countermeasures against Trump’s tariffs on Wednesday, which are set to take effect next week. Oil prices face further downward pressure from a slowing Chinese economy. Trump’s 104% tariffs on Chinese goods prompted the drop, though China’s central bank intervened, setting a firmer midpoint rate and curbing dollar purchases to stabilize the currency.

Besides its primary role as the most important energy source, crude oil is also an essential raw material for manufacturing plastics. Because the supply of crude oil is limited but demand is constantly increasing, the price of oil is also continuously rising. Because crude oil is needed to manufacture other primary materials, it is the world’s most important commodity. The US investment bank Goldman Sachs estimates the proportion of crude oil used for primary materials production to be 45 per cent.

So the extraction process, machinery and capital required are different. The UK-based FTSE100 did buck the trend, however, adding 0.3% and rising for a fifth session straight as oil prices recovered 2%. This follows Trump’s “reciprocal” tariffs, including 104% on China and 20% on most EU goods, which took effect last Wednesday, sparking a week-long market selloff. Japan and Canada, the G7 chair, agreed Wednesday to work together to stabilize financial markets battered by Trump’s tariffs, Japan’s Ministry of Finance said. Oil and related energy stocks fell Wednesday as the price of crude dropped to its lowest level since 2021. Goldman Sachs lifted its recession odds to 45% this week, citing tariffs as the main reason.

Stay up-to-date with the latest market news and watch the US crude oil spot price live at Capital.com. Yes, WTI and Brent oil futures are commonly used for hedging purposes by participants in the oil industry. Oil producers, refiners, and other market participants often utilize futures contracts to manage their exposure to price volatility. By taking positions in oil futures, they can offset potential losses from adverse price movements in the physical market, providing a form of insurance against price risks.

The indices were sharply down during US trading as traders considered the possibility of delayed interest rate cuts from the US Fed in the face of resurging inflation. Gasoline inventories fell 1.6 million barrels, distillates dropped 3.5 million, yet demand weakens, with total products supplied over four weeks down 1.9% year-over-year. The World Trade Organisation sharply cut its forecast for global merchandise trade on Wednesday, adding that US tariffs could bring about the heaviest slump since the height of the Covid pandemic. Elsewhere, U.S. crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday. According to the historical US crude oil chart, the commodity reached a record low of $11 in December 1998 and a record high of $147.27 in June 2008. Investors are dumping shares amid fears of shrinking margins and a prolonged demand slump.

The uncertainty over trade tensions has led several banks, including UBS, BNP Paribas and HSBC, to cut their crude price forecasts. Crude inventories rose by 515,000 barrels to 442.9 million barrels in the week ended April 11, the EIA said, compared with analysts’ expectations in a Reuters poll for a 507,000-barrel rise. Brent crude futures rose $1.06, or 1.64%, to $65.73 a barrel by 1618 GMT while US West Texas Intermediate crude rose $1.02, or 1.66%, to $62.35. The European Central Bank (ECB) plays a pivotal role in the economic stability of the eurozone, meaning ECB interest-rate forecasts are key velocity trade to understanding how financial and economic scenarios might evolve.

From time to time new oil resources come online — like Canadian oil sands or US crude oil from oil shale — these add to the global supply. New sources can exert a downward force on oil prices, even in times of heavy demand. US crude oil is one of the world’s most valuable commodities available for trade.