Oil prices fell sharply on Friday, hitting their lowest level since 2021, amid growing concerns about the impact of the trade war on the global economy.
According to CNN, US crude fell 8% to $61.92 a barrel. This follows a 6.6% drop on Thursday, triggered by fears of trade tariffs and a sudden increase in production by the Organization of the Petroleum Exporting Countries (OPEC). During the day, the price of oil reached as low as $60.81 a barrel, the lowest level since April 2021.
This is the worst day for the oil market since mid-2022.
While former President Donald Trump has supported lower energy prices to help lower the cost of living, the current oil slump is happening for a troubling reason: fears of a potential recession.
Oil traders are concerned that the trade war will slow economic growth to the point of reducing energy demand, plunging the market into a new crisis.