U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears!
U.S. oil prices dropped below $60 a barrel on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 4% to $59.30 on Monday. The move comes after back-to-back 6% declines last week. WTI is now at the lowest levels since 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
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Tariffs could lead to recession, sure, but on the other hand $60 / barrel oil, as a result of OPEC cancelling its planned production rise, is surely a positive thing for economies and prices in general?