Tokyo April 7 2025: Oil prices slid more than 3% on Monday, deepening last week’s losses, as escalating trade tensions between the United States and China stoked fears of a recession that would reduce demand for crude.
Brent futures declined $2.28, or 3.5%, to $63.30 a barrel at 0049 GMT, while U.S. West Texas Intermediate crude futures lost $2.20, or 3.6%, to $59.79. At the session low, both benchmarks hit their lowest since April 2021.
Oil plunged 7% on Friday as China ramped up tariffs on U.S. goods, escalating a trade war that has led investors to price in a higher probability of recession. Over the past week, Brent lost 10.9%, while WTI dropped 10.6%.
“The primary driver of the decline is concern that tariffs will weaken the global economy,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
“Additionally, a planned production increase by OPEC+ is also contributing to the selling pressure,” he said, adding that retaliatory tariffs from countries beyond China will be a key factor to watch.
