Overview

• Oil benchmarks Brent and WTI have fallen to their lowest levels since February 2021, with prices dropping over 6% on April 9, 2025.
• The U.S. implemented a sweeping 104% tariff on Chinese goods, prompting China to respond with 84% retaliatory tariffs on American imports, further destabilizing global trade relations.
• OPEC+ announced a 411,000 barrel-per-day production increase starting in May, while Saudi Aramco reduced crude prices for Asian buyers, exacerbating oversupply concerns.
• Market analysts warn that the escalating trade conflict, combined with increased oil production, could lead to a global economic recession and further weaken demand for crude oil.
• The American Petroleum Institute reported a 1.1 million barrel drop in U.S. crude inventories, though this failed to offset the broader market sell-off driven by trade and production dynamics.