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A snapshot of inactive oil pump jacks can be seen at the Airankol oil field, operated by Caspiy Neft in Kazakhstan’s Atyrau Region, taken on April 2, 2025.
Crude oil futures have experienced a notable decline, dropping over 2% on Thursday, largely due to President Donald Trump’s significant tariffs on China, which overshadowed his recent decision to implement a 90-day freeze on increased tariffs affecting most other nations.
The price of U.S. crude oil decreased by $1.76, or 2.8%, landing at $60.59 per barrel. Meanwhile, the global benchmark, Brent crude, saw a decline of $1.72, or 2.6%, settling at $63.76 per barrel.
On Wednesday, crude prices had seen a surge following Trump’s announcement of a lower temporary tariff rate of 10% on several U.S. trading partners, with indications from Trump that he was open to negotiating with countries that would not retaliate. Consequently, West Texas Intermediate experienced a notable fluctuation, rising 13% from its session low to finish at $62.35 per barrel.
However, the announcement of escalated tariffs on China, which is recognized as the second-largest economy globally and the predominant importer of crude oil, has cast a shadow over the market on Thursday. The new tariffs on China are set to reach an unprecedented 125%, raising concerns among investors.
According to Jim Burkhard, who leads oil market research at S&P Global Commodity Insights, the implications of these tariffs on China are significant. “The increase in tariffs on China is noteworthy,” Burkhard remarked. “Given the multiple negotiations involving various countries, it raises the question of whether the U.S. can effectively engage with 70 different nations simultaneously. I believe the uncertainty is far from resolved.”
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