Benchmark crude oil prices fell to a four-year low due to escalating trade tensions and prospects of increased supply from some OPEC+ countries.
Since the beginning of the week, the price of WTI oil with delivery in May has dropped by 1.23% on the NYMEX. As of today, April 16, it stands at $60.94 per barrel.
Brent oil price with delivery in June declined by 0.62% to $64.30 per barrel. The price difference between Brent and WTI contracts totaled $3.36 per barrel.
Global observed oil inventories rose 0.29% to 7.647 billion barrels in February. Preliminary data indicate that world crude reserves rose further in March. The International Energy Agency (IEA) reduced its forecast for oil demand growth in 2025 by 29% to 730,000 barrels per day (bpd).
International oil prices have already dropped by about $10–15 per barrel during March and early April, as investment risk sentiment has deteriorated due to rising US tariffs and growing recession fears.
A significant drop in the cost of a barrel has shocked the US shale sector, as companies need a price averaging $65 per barrel to profitably drill new oil wells. With the new tariffs, buying steel and equipment could also get more expensive, reducing the profitability of drilling even deeper.
Although imports of oil, gas, and refined products have been exempted from the duties announced by the United States, concerns about triggering inflation, dampening economic growth and intensifying trade disputes have put pressure on the prices.
The following trading strategy may be suggested: selling at the current price with Take Profit at 60.00 and Stop Loss at 68.00.
This content is for informational purposes only and is not intended to be investing advice.
