Crude Oil Tumbles To Lowest Levels In Over Three Years

(RTTNews) - Following the sharp pullback seen in the previous session, the price of crude oil showed another substantial move to the downside during trading on Friday.

Crude for May delivery has plunged $4.95 or 7.4 percent to $62 a barrel after plummeting $4.76 or 6.6 percent to $66.95 a barrel in Thursday's session. With the extended nosedive, the price of crude oil hit its lowest level in over three years.

Concerns about the impact a global trade war will have on fuel demand continued to weigh on crude oil after China announced retaliatory tariffs on U.S. goods in reaction to President Donald Trump's new levies.

China's finance ministry announced a 34 percent tariff will be imposed on all imported goods originating from the U.S. beginning on April 10th.

The new tariff matches the "reciprocal tariff" Trump plans to impose on China, although the country will face a 54 percent effective rate when the new levies are combined with existing duties.

The ministry called Trump's tariff plan a "typical unilateral bullying practice" that is "inconsistent with international trade rules."

Responding to the news in a post on Truth Social, Trump argued China "played it wrong" and "panicked," calling the move "the one thing they cannot afford to do."

Canada and the European Union are also purportedly preparing countermeasures, leading to concerns about a trade war that could fuel inflation and damage the global economy.

Worries about an increase in supply at a time of slowing demand also contributed to steep drop by crude oil after eight OPEC+ countries agreed Thursday to speed up previously announced increases in crude oil output.

A statement from OPEC said Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman agreed to increase production by 411,000 barrels per day in May.

OPEC noted the increase in production comprises the increment originally planned for May in addition to two monthly increments.