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Oil prices plunged about 7% to settle at their lowest in over three years after China announced additional 34% tariffs on all U.S. goods from April 10. Brent settled at $65.58 and WTI at $61.99, with both posting their biggest weekly losses in roughly a year or more.
Escalating tariffs raise recession odds and cut expected energy demand from the world's top oil importer, pushing crude and energy-linked prices lower. Weaker crude also lowers biofuel and feedstock economics, pressuring soybean oil and palm oil.
reuters.comArathy SomasekharApr 4, 2025After 80 past bearish trade events, Crude Oil (WTI) moved a median -2.2% over 5 sessions (30% higher; middle half -6.9% to +0.8%), and -1.5% over 20.
After 56 past bearish trade events, Crude Oil (Brent) moved a median -5.6% over 5 sessions (20% higher; middle half -9.0% to -1.7%), and -4.5% over 20.
After 152 past bearish trade events, Soybean Oil moved a median -0.2% over 5 sessions (47% higher; middle half -2.1% to +2.1%), and -0.1% over 20.
After 158 past bearish trade events, Palm Oil moved a median +0.0% over 5 sessions (51% higher; middle half -1.3% to +0.8%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
China's retaliatory 34% tariffs on April 4 escalated the trade war and drove a roughly 7% Brent drop to $65.58, raising the demand-destruction outlook.
China's 34% retaliatory tariffs on Apr 4 escalated the trade war, raised demand-destruction fears and drove a ~7% drop to multi-year lows.
China's 34% retaliatory tariffs escalated the trade war and drove a ~7% settlement drop in WTI to lows in over three years.
A 7% crude oil plunge to 3-year lows on US-China tariff escalation weakens palm oil via reduced biodiesel/discretionary blending economics and the palm-gasoil spread, plus broad risk-off sentiment and fears of lower global demand, all coinciding with the start of the 5-day decline.
Crude's ~7% plunge to a 3-year low on April 4 reduced palm's biodiesel discretionary-blending appeal and set up the Monday selloff.
Crude oil plunged about 7% on China's retaliatory tariffs, which cuts palm oil's biodiesel/energy-linked demand and pressured vegetable oils.
