Trump Tariffs Aren’t The Only Bearish Blows For Global Oil Markets

Oil worker in front of a pumpjack.
U.S. President Donald’s Trump decision to impose trade tariffs on the country’s major and minor trading partners alike, and practically all nations in between has caused havoc in the global equity markets. Oil markets are reeling from the shock of the so-called Trump Tariffs too, and then some.
At 12:30 EDT on Monday, the Brent crude front-month futures contract closed down 1.65% or $1.08 at $64.50 per barrel. Meanwhile, the West Texas Intermediate crude futures contract was trading at $60.94 per barrel at 16:35 EDT, down 1.61% or $1.
Both crude benchmarks have shed over $10 a barrel since April 2. That’s the date last week, when Trump slapped a 10% "baseline" tariff on imports to the U.S., and much higher rates of up to 50% against dozens of countries. They include a number of key manufacturing centers in Asia.
Many countries have vowed to respond. China has already retaliated with new tariffs of its own on goods it imports from the U.S., with Trump vowing to respond with even higher tariffs against Beijing. But reports based on briefings by Trump administration officials also suggest 50 countries are willing to negotiate too.
However, with a distinct possibility of an all out global trade war and a potential recession in its wake, there is little to be bullish about oil prices. More so, because bearish sentiment was already well entrenched in world’s crude markets before the latest events unfolded.