Brent oil price falls to lowest level since 2021

Brent crude oil prices on world markets have fallen significantly for the first time since 2021. The main reasons for this are the trade conflict between the US and China, as well as new OPEC+ production plans.

Lower than $64: Historical low

On Friday, April 4, the price of Brent crude oil for June delivery on the ICE Futures exchange in London fell by 8.02% to $64.35 per barrel. This is even lower than the price observed on August 23, 2021, and is the first time such a low price has been recorded in the last 3.5 years.

In the last two trading sessions, oil prices have fallen by a total of 13.59 percent. This has caused serious unrest in the market.

Impact of the US-China trade war

The main factor behind this sharp decline in prices is the new import tariffs announced by US President Donald Trump. On April 2, Trump announced the introduction of tariffs ranging from 10 percent to 50 percent on goods from 183 countries. According to him, these measures are being taken to protect the US economy.

In response to this decision, China announced that it would introduce retaliatory tariffs of 34 percent on all products imported from the United States. These tariffs will come into effect on April 10 and are expected to have a serious impact not only on economic relations, but also on the energy market.

OPEC+ plans also put pressure on prices

Another factor contributing to the decline in the markets was the revision of oil production plans by OPEC+. The organization had previously planned to produce up to 135 thousand barrels per day, but under the new plan, it is planned to produce up to 411 thousand barrels per day. This increase in supply has further increased pressure on prices.

The sharp decline in Brent oil prices is due to global economic processes, geopolitical relations, and the supply-demand balance in the market. The escalation of the trade war between the US and China, along with OPEC+'s efforts to increase production, may further increase instability in the oil market. Prices are likely to change again in the coming days, as political and economic factors are becoming increasingly important. Follow “Zamin” news on “Telegram”