Oil prices are reduced to lower levels than 2021 pandemic

Oil prices sank by 8% on Friday, heading to the lower than the height of the Crown Pandemic in 2021.

This dramatic decline was caused by escalating tensions in the world trade war between the US and China. In retaliation for President Trump’s recent pricing hikes, China has announced plans to impose an additional 34% invoice on all US goods from April 10.

World markets reacted abruptly, with Brent contracts falling by $ 5.30, or $ 7.6%, to $ 64.84 a barrel by 1254 GMT, while US West Texas Intermedia (WTI) decreased $ 5.47 or 8.2%to $ 61.48. Both benchmarks were on track for their biggest weekly losses in over two years.

Ole Hansen, head of Saxo Bank’s basic strategy, said: “China’s aggressive response to US invoices, but confirms that we are heading for a world trade war, a war that has no winners and will not harm economic growth and economic growth and demand for economic growth.

The composition of the sale was a decision by the organization of oil exporting countries (OPEC) and its allies, known as OPEC+, to accelerate plans to increase production. The group is now aiming to return 411,000 barrels a day to the market in May, from the previously planned 135,000 barrels a day.

Movement by OPEC+ further added to the concerns that the global oil market would face over -supply. Meanwhile, US invoices, which relieve imports of oil, gas and sophisticated products, are expected to cause inflation, slow down economic growth and exacerbate commercial differences, which weigh largely in oil prices.

In response to developments, Goldman Sachs analysts have abruptly reduced oil prices in December 2025. They cut the Brent and WTi targets by $ 5 each up to $ 66 and $ 62 per barrel, respectively.

“The risks to reduced oil prices are towards the disadvantage, especially for 2026, as growing risks of recession and, to a lesser extent, higher OPEC+supply,” said Daan Struyven, head of the bank’s oil research.