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 President Donald Trump’s reciprocal tariffs took effect and China slapped retaliatory duties on the U.S.
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 per barrel.
The oil sell-off took a leg lower after Beijing announced retaliatory tariffs of 84% on U.S. goods in response to Trump’s levies. China’s tariffs will take effect on April 10.
Traders are worried that the world is descending into a full-blown trade that will trigger a recession and hit demand for crude oil. OPEC+, meanwhile, has agreed to accelerate its output in May, bringing more oil to a market that is already facing a surplus.
Helima Croft, global head of commodity strategy at RBC Capital Markets, called the collision of recession fears and growing oil supplies a “toxic cocktail.”
This is a developing story. Please check back for updates.
