Brent Crude Falls Below $60 Per Barrel, Plunges Nearly 5% Amid Cloud Over Global Demand
International oil prices have nosedived over the past week, after US President Donald Trump announced the imposition of reciprocal tariffs.
Futures of Brent, the global crude oil benchmark, plunged nearly 5% during the trading session on Wednesday. The fresh fall in Brent pushed its value below the $60 per barrel-mark.
International oil prices have slumped over the past week, since US President Donald Trump announced the imposition of reciprocal tariffs. Since the tariff announcement on April 3, the oil prices have nosedived by over 19%.
At 3:59 p.m. (IST), Brent futures were trading 4.8% lower at $59.8 a barrel. The US West Texas Intermediate also declined, with its futures trading 4.1% lower at $57.14.
The tariffs announced by Trump have triggered fears of recession in the US, and raised a cloud over global demand. The reciprocal levies hurt China the most, which has been hit with cumulative tariffs of 104%.
The adverse impact of US trade policies on China affects the prospects of global oil demand, as the country is the biggest importer of crude oil.
As per Goldman Sachs, Brent crude prices could decline to $55 per barrel by December 2026, if the US avoids a recession.
In an extreme case scenario, which involves a potential slowdown in global economic growth and unwinding of supply cuts by the Organization of the Petroleum Exporting Countries, Brent may slip to $40 per barrel by December 2026, the financial services firm said.
Oil prices have also been weighed down by Saudi Arabia slashing the price of its flagship crude May Arab Light to Asia by $2.30 per barrel— its biggest cut in over two years— over the weekend.
Since retail fuel prices are linked to international oil rates, the domestic rates of petrol and diesel are under focus. India's Petroleum Minister Hardeep Singh Puri said on Monday that consumers can expect a reduction in the fuel rates if Brent stays at $60 per barrel.
Amid the declining global rates, the Indian government raised the excise duty on petrol and diesel by Rs 2 per litre. However, the hike in duty will not be passed on to the consumers and the retail fuel rates will remain unchanged, the government had clarified.
