Trump's tariff war: a record drop in the oil market!

Donald Trump's new global tariff policy has led to a sharp decline in oil prices on the world market over the past three and a half years. This is reported by Reuters.

As reported, on April 30, Brent crude futures on the London Stock Exchange fell by 49 cents, or 0.8 percent, to $63.76 per barrel. US West Texas Intermediate (WTI) crude also fell by 40 cents, or 0.7 percent, to $60.02 per barrel.

In April this year, Brent crude fell by about 15 percent, and WTI by 16 percent. According to Reuters, this is the largest decline since November 2021.

These changes in the oil market are associated with the new tariff policy announced by US President Donald Trump on April 2 of this year. According to him, additional duties will be imposed on all goods imported into America. This has led to a sharp increase in global trade not only with China, but also with other countries. The Beijing administration has also taken measures against these US decisions.

According to analyses conducted by Reuters, the Trump administration's tariff policy has increased concerns that the global economy could plunge into a sharp recession. There are also circumstances confirming this: in April, China's manufacturing sector experienced the sharpest decline in the last 16 months.

At the same time, the further decline in oil prices was also caused by the plans of OPEC+ countries to increase oil production. It is expected that the volume of black gold extraction will increase in May and June.

Experts believe that if no concrete steps are taken to resolve the tariff war, this situation could have a long-term negative impact on the global economy. In particular, the worsening relations between China and the United States are likely to reduce the confidence of market participants and lead to a further decline in prices. Read 'Zamin' on Telegram!