Oil containers are seen in a field on April 07, 2025 in Yorktown, Texas.
Brandon Bell | Getty Images
U.S. crude oil futures fell more than 6% on Wednesday, as China slapped retaliatory tariffs on the U.S. after President Donald Trump’s sweeping levies took effect.
The U.S. benchmark dropped $4.01, or 6.7%, to $55.57 per barrel by 7:53 a.m. ET. Global benchmark Brent tumbled $4.04, or 6.4%, to $58.78.
The oil sell-off took a leg lower after Beijing announced tariffs of 84% on U.S. goods in response to Trump’s levies. China’s tariffs take effect on April 10.
Traders are worried the world is descending into a full-blown trade war that will trigger a recession, hitting crude oil demand. OPEC+, meanwhile, has agreed to accelerate output in May, which will bring more oil to a market that was already facing a surplus.
The collision of recession fears and growing oil supply is a “toxic cocktail,” Helima Croft, global head of commodity strategy at RBC Capital Markets, told CNBC on Tuesday.
This is a developing story. Please check back for updates.
