FX.co ★ Oil Drops Further on Tariff Concerns

WTI crude oil futures experienced a significant decline, falling over 4% to below $57 per barrel on Wednesday. This marks the fifth consecutive session of losses, driven by concerns that U.S. tariffs could trigger a global recession and diminish demand. President Donald Trump's substantial tariffs are set to be implemented today, including an anticipated 104% tariff on China, the world's largest oil importer. While the White House has indicated an openness to negotiate with trade partners, China has firmly stated its intention to "fight to the end," suggesting the possibility of an extended trade conflict. Since April 2, WTI has lost approximately 20% of its value, influenced by weaker demand forecasts and increased production levels. In other developments, API data revealed a reduction in U.S. crude oil inventories by 1.1 million barrels last week, offsetting the 6 million barrel increase recorded the previous week.