United States oil prices dropped below $60 a barrel on Sunday due to concerns that President Trump’s global tariffs could push the U.S. and possibly the world into a recession.
Futures for West Texas Intermediate crude fell over 3 per cent to $59.78, following back-to-back 6% declines last week.
This marks the lowest price for WTI since April 2021.
Concerns are growing that tariffs could increase costs for businesses, potentially slowing economic activity and ultimately reducing oil demand.
JPMorgan warned that the tariffs, set to take effect this week, could push the U.S. and potentially the global economy into recession this year.
On Thursday, the firm increased its recession forecast for this year to 60%, up from 40%, following the tariff rollout.
Trump’s tariff announcement on Wednesday sent shockwaves through global stock markets, erasing $5 trillion in value for S&P 500 companies by Friday’s close, marking the largest two-day decline in history.
Oil and commodity prices plummeted, while investors flocked to the safety of government bonds.
The 10% tariff initially impacted countries like Australia, Britain, Colombia, Argentina, Egypt, and Saudi Arabia. A U.S. Customs and Border Protection bulletin clarified that there would be no grace period for cargoes already on the water at midnight Saturday.
