The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. Picture taken November 22, 2019. REUTERS/Angus Mordant
International oil prices dropped below $60 a barrel as concerns intensified that US President Donald Trump’s new trade tariffs could push both the American and the global economy into a recession.
US West Texas Intermediate (WTI) crude futures fell more than 3 percent to $59.78 Sunday night, following two consecutive 6% weekly declines. WTI is now trading at its lowest level since April 2021.
The downturn is driven by fears that the proposed tariffs, expected to take effect this week, could raise costs for businesses, slow economic activity, and ultimately reduce global oil demand.
JPMorgan warned that the tariffs would likely push the US and possibly global economy into recession this year. It even raised its recession probability forecast from 40 percent to 60 percent on Thursday.