Oil plunged to the lowest in more than three years as US President Donald Trump's trade wars hammer the outlook for demand just as OPEC+ signals it's ready to start opening the taps on supply.
Brent crude plummeted as much as 3.8% to trade below $69 and touch the lowest since December 2021. West Texas Intermediate dropped as much as 4.5% to approach $65 and touch the lowest since May 2023.
Trump's trade measures are threatening to reduce global energy demand and redraw oil flows, though just how they will play out depends on their final makeup and duration, both of which remain uncertain. On the supply side, OPEC+ nations are forging ahead with a scheduled production hike and US domestic stockpiles swelled last week, adding to expectations of a surplus.
Crude has trended lower since mid-January as Trump's policies raised fears of multiple trade wars. Oil options traders are the most bearish in five months, and volumes of bearish put contracts surged Tuesday.
EIA Data: Crude +3,614k Bbl, Median Est. +800k Bbl.
Prices:
WTI for April delivery was down 4.2% at $65.41 a barrel at 11:46 a.m. in New York.
Brent for May delivery slid 3.6% to $68.50 a barrel.
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