Oil Prices Fall Below $65 as Trump’s Tariffs, OPEC+ Actions, China’s Retaliation Shake Global Market

• Brent crude dips below $65 for the first time since 2021, losing $10 per barrel in one week.
• Trump’s new tariffs on countries buying Venezuelan oil spark global backlash and market fears.
• OPEC+ increases output sharply, while China retaliates with a 34% tariff on all U.S. goods, escalating trade tensions.

Global oil prices dropped sharply  as several major events rocked the energy market.

For the first time since August 2021, Brent crude oil fell below $65 per barrel. The fall in prices was caused by a mix of U.S. trade policies, increased oil production from OPEC+, and China’s response to new tariffs.

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According to Oilprice.com, the drop happened mainly because of:

U.S. President Donald Trump’s new tariffs on countries buying crude oil from Venezuela.

OPEC+’s sudden decision to raise oil production faster than expected.

China’s retaliation, which included heavy tariffs on U.S. goods.

The combination of these factors led to an estimated $10 per barrel loss in global oil prices.

On Friday, Brent crude ended the week at $65 per barrel, while U.S. West Texas Intermediate (WTI) futures fell by $4.96, a 7.4% drop, closing at $61.99 per barrel.

Oilprice.com noted that even though oil futures (known as “backwardation”) did not change much, the major cause of the price drop appeared to be the U.S. tariffs. The platform described the week as one of the worst in recent oil market history.

Trump’s decision to target the oil sector marks a new and aggressive approach in his trade policy. It has drawn global attention and strong reactions from oil-exporting nations. Many of these countries are now planning countermeasures to protect their economies.

At the same time, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) surprised markets by announcing they would increase oil supply more quickly than planned. Instead of raising production by 135,000 barrels per day in May, they will now add 411,000 barrels per day. This unexpected move has raised fears of an oversupply in the market at a time when global oil demand is still uncertain.

Adding more tension, China—currently the world’s largest buyer of crude oil—responded to the U.S. tariffs with a 34% tariff on all American goods, starting on April 10. This step deepens the trade conflict between the two largest economies in the world and has raised concerns of a potential global economic slowdown.

Reuters reports that many other countries are also considering their own actions in response to the U.S. tariffs, which are now at levels not seen in more than 100 years.

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With rising trade tensions, uncertain oil demand, and fears of a global recession, analysts warn that the oil market could remain unstable and highly volatile for the foreseeable future.

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