U.S. crude oil futures fell about 3% on Wednesday, as China announced retaliatory tariffs on the U.S. after President Donald Trump’s sweeping levies took effect.
Figures released Wednesday morning show the U.S. benchmark dropped $1.83, or 3.07%, to $57.75 per barrel by 9:41 a.m. ET. Global benchmark Brent tumbled $1.93, or 3.07%, to $60.89.
The oil selloff took a leg lower earlier in the session after Beijing announced tariffs of 84% on U.S. goods in response to Trump’s levies. U.S. crude fell more than 7% to an intraday low of $55.12, while Brent tumbled to $58.40 at its lowest point during the session.
China’s tariffs take effect on Thursday.
Traders are worried the world is descending into a full-blown trade war that will trigger a recession, hitting crude oil demand, amid Trump's admonition to "BE COOL!"
The Organization of the Petroleum Exporting Countries and their allies, meanwhile, have agreed to accelerate output in May, which will bring more oil to a market that was already facing a surplus.
