Brent Crude Drops to Four-Year Low, WTI Crashes to $56 Per Barrel

Brent crude prices have plunged by $4 per barrel since markets opened yesterday, settling at $60.9 per barrel, the lowest level since February 2021. West Texas Intermediate (WTI) crude also declined, reaching $56.7 per barrel, levels that could undermine the viability of many oil producers worldwide. Several shale operators require prices well above $50 per barrel to maintain profitability. The decline reflects mounting concerns over weakening global oil demand as the impact from US trade tariffs gains traction. A new round of US tariffs took effect today, including a 104 percent levy on Chinese imports. The aggressive trade stance has hurt investor sentiment, sending oil, commodities, and equity markets into retreat. With no signs of de-escalation, the risk outlook remains firmly tilted to the downside. Despite a one million barrel draw in US crude inventories reported by the American Petroleum Institute, markets remained largely unmoved. The data contrasted with expectations of a 1.7 million barrel build but failed to boost sentiment, which remains dominated by macroeconomic headwinds. Geopolitical uncertainty in the Middle East adds another layer of complexity. Any potential US action targeting Iranian oil exports could tighten supply and lift prices. Market volatility appears set to continue as supply-demand imbalances and geopolitical risks weigh heavily on oil prices across the globe.