TEMPO.CO, Jakarta - Global oil prices dropped sharply by nearly 4 percent during trading on Wednesday, April 9, 2025.
According to data from Trading Economics, Brent crude futures declined by 3.39 percent or US$2.13 to US$60.69 per barrel. Similarly, West Texas Intermediate (WTI) crude fell by US$2.36 or 3.96 percent to US$57.22 per barrel.
The slump in both benchmark prices followed the implementation of a 104 percent U.S. import tariff on Chinese goods, which officially took effect today.
The downward trend had already begun after President Donald Trump announced the tariff hike on Thursday, April 3, 2025.
According to Rystad Energy's website, the drop in global oil prices is a consequence of the ongoing trade war between the United States and China. The decline followed China’s retaliatory move to impose a 34 percent tariff on all U.S. products in response to President Trump's policy.
According to Ye Lin, the vice president of the oil commodity market at Rystad Energy, China's oil demand of 50,000 to 100,000 barrels per day is at risk if the trade war continues for a long time.
He noted that the sharp decline in oil prices has been further worsened by OPEC+'s decision to raise output by 411,000 barrels per day starting in May, a move analysts believe could lead to a market surplus.
The Goldman Sachs, a multinational investment bank and financial services company, estimates that if the trade war trend between the two countries continues, Brent and WTI could fall to US$62 and US$58 per barrel by December 2025 and to US$55 and US$51 per barrel by December 2026.
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