A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. crude oil closed below $60 per barrel on Tuesday, the lowest level in four years as traders fear that President Donald Trump’s sweeping tariffs will trigger a full-blown, global trade war.
U.S. crude oil lost $1.12, or 1.85%, to close at $59.58 per barrel, the lowest level since April 2021. Global benchmark Brent fell $1.39, or 2.16%, to settle at $62.82 per barrel.
The U.S. benchmark rose much as 1.7% earlier in the session, but pulled back as Trump’s China tariffs loom over the market. Prices are down more than 15% since last Wednesday when Trump announced the new round of import taxes.
The oil market faces a “toxic cocktail” of recession fears due to Trump’s tariffs and the decision by OPEC+ to bring more barrels back to the market, said Helima Croft, global head of commodity strategy at RBC Capital Markets.
“For now people are waiting to see if there’s a potential off ramp to this trade dispute,” Croft told CNBC’s “Squawk on the Street.”
The U.S. tariff rate on China is set to skyrocket to 104% at 12:01 a.m. ET Wednesday, according to the White House. Beijing has shown no signs of backing down, vowing to “fight to the end.”
Treasury Secretary Scott Bessent on Tuesday told CNBC that China was playing a losing hand.
“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent said during an interview on CNBC’s “Squawk Box.” “What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”