Oil prices crash over 8% to near 4-year lows amid trade war, Opec supply woes; Brent crude slips below $65 mark

Crude oil prices took a severe beating on Friday, extending their decline to 8%, after China retaliated with fresh tariffs in response to US President Donald Trump's levies on the Asian nation.

With today's fall, the crude futures were set to hit their lowest level since the middle of the Covid-19 pandemic in 2021, according to Reuters data.

Brent futures dived by $5.72, or 8.2%, to $64.62 a barrel and US West Texas Intermediate crude futures lost $5.90, or 8.8%, to $61.05.

Both benchmarks were on track to record their biggest weekly losses in percentage terms in more than two years, a Reuters report said.

China hits back with fresh tariffs

According to media reports, China said it will impose additional tariffs of 34% on all US goods from April 10. Nations across the world are preparing to impose levies on the US in response to the tariffs Trump announced on over 180 countries. The signs of a trade war, which could slow down the global economy, have sent the global financial markets into a tailspin, with effects being felt on the commodity market as well.

Even gold took a hit today, which is often seen as a safe haven bet, swept up in the pessimistic mood that hit global markets.

Output concerns fuel oil sell-off

Additionally, oil sell-off was also driven by a decision of the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC, to advance plans for output increases. The group now aims to return 411,000 barrels per day (bpd) to the market in May, up from the previously planned 135,000 bpd.

Imports of oil, gas and refined products were given exemptions from Trump's sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices.

Goldman cuts oil price target

Goldman Sachs responded with sharp cuts to their December 2025 targets for Brent and WTI by $5 each to $66 and $62 respectively.

"The risks to our reduced oil price forecast are to the downside, especially for 2026, given growing risks of recession and to a lesser extent of higher OPEC supply," the bank's head of oil research, Daan Struyven, said in a note, according to a Reuters report.

(With inputs from Reuters)

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