Oil prices fell sharply on Monday, reaching their lowest levels in four years, driven by fears of economic fallout following former U.S. President Donald Trump’s decision to impose massive tariffs on America's trading partners.
Brent crude, the global oil benchmark, dropped 3.5% to $63.30 per barrel, while West Texas Intermediate (WTI), the U.S. benchmark, also fell 3.5% to $59.84 by 4:16 a.m. ET. Both benchmarks are now trading at their lowest points since early 2021, when the world was still grappling with the economic impacts of the COVID-19 pandemic.
The price declines come after OPEC+—a coalition of the world's leading oil producers—caught investors off guard last week by agreeing to a much larger increase in oil supply than previously planned. Saudi Arabia, Russia, and six other members of the group decided to raise production starting in May, intensifying concerns about oversupply in the global market.
