Oil extends losses, drops over $2
Oil prices deepened their losses today, April 7, continuing their decline for a third consecutive day, as financial markets in Asia fell broadly amid concerns that the US-led trade war could push the global economy into recession.
Brent crude was trading near the lowest level in four years as it fell 3.6% at $63.22 a barrel, at 9:40 am Makkah time.
West Texas Intermediate (WTI) crude plunged 3.73% to $59.68 a barrel.
Oil prices were hammered last week, falling nearly 7% on April 3 after China raised tariffs on American goods, escalating the trade war between the world's two largest economies and reinforcing fears of a recession.
'Markets are beginning the week still in the throes of panic,' said Vandana Hari, Founder of Vanda Insights, according to Bloomberg. 'No one dares pick a bottom' and 'stand in the way of the selling tsunami,' she said.
Hari expects this situation to persist for all risk assets until Trump clarifies or signals something that will cause investors to pause and reassess their recession fears.
Meanwhile, over the weekend, OPEC+ ministers emphasized the need to fully adhere to their oil production targets and called on members that are overproducing to submit plans by April 15 to compensate for the over-pumping.
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