US oil prices fell 2% on Monday, adding to last week’s losses as fears of a recession grow over President Donald Trump’s global tariffs. US crude oil dropped $1.29 to close at $60.70 per barrel, while Brent lost $1.37 to settle at $64.21.
The decision by key OPEC+ producers to increase production hikes has also contributed to the downward pressure on oil prices. Saudi Aramco recently slashed its flagship Arab Light crude price.
President Trump touted the drop in oil prices, stating that tariffs are bringing in billions of dollars for the US each week. However, experts warn that tariffs could lead to higher business costs and a slowdown in economic activity, ultimately hurting demand for oil.
Analysts at JPMorgan and Bank of America predict that tariffs will cut oil demand growth in half this year, leading to an “eye-watering” surplus of 1.25 million barrels per day. Goldman Sachs has also lowered its oil price forecast for December 2025, predicting prices will fall further in 2026.
Falling oil prices could force US shale producers to cut production, as US crude oil is already below the break-even price for some companies. The market is already oversupplied, and prices may drop below $50 per barrel.
The trajectory of global trade tensions and their impact on oil prices remains uncertain, with negotiations between countries potentially leading to lower tariff rates. However, for now, “the trajectory is unmistakably one-way” towards falling oil prices.
Source: https://www.cnbc.com/2025/04/06/us-crude-oil-falls-below-60-a-barrel-to-lowest-since-2021-on-tariff-fueled-recession-fears.html