A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
Crude oil futures fell Tuesday, adding further to already steep losses on fears that President Donald Trump’s sweeping tariffs will trigger a full-blown, global trade war.
U.S. crude oil was down 73 cents, or 1.2%, to $59.97 per barrel, while global benchmark Brent fell $1, or 1.56%, to $63.21 per barrel.
The U.S. benchmark tumbled after rising as much as 1.7% earlier in the session.
The oil market faces a “toxic cocktail” of recession fears due to Trump’s tariffs and the decision by OPEC+ to bring more barrels back to the market, said Helima Croft, global head of commodity strategy at RBC Capital Markets,
“For now people are waiting to see if there’s a potential off ramp to this trade dispute,” Croft told CNBC’s “Squawk on the Street.”
China has vowed to fight Trump’s tariffs to the end. Beijing has announced 34% tariffs on U.S. goods starting April 10. Trump subsequently threatened additional 50% levies on Chinese goods if Beijing moves forward with retaliation.
Treasury Secretary Scott Bessent on Monday told CNBC that China was playing a losing hand.
“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent said during an interview on CNBC’s “Squawk Box.” “What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”
