Oil prices fall apart to the lowest level of 4 years, and Brent crude is declining to $ 64

Oil prices decreased by 8% on Friday, heading towards the lowest closure level since the peak of the Corona virus in 2021, after China responded by imposing customs duties in the face of the package of fees announced by US President Donald Trump this week.

China has announced that it would impose additional 34% fees on all American goods as of April 10. Countries around the world have prepared to respond after Trump raised customs barriers to its highest level in more than a hundred years, which led to a significant decline in global financial markets.

Brent crude futures fell by $ 5.72, or 8.2%, to $ 64.62 a barrel. US West Texas Intermediate crude contracts lost $ 5.90, or 8.8%, to $ 61.05.

Both were the two standards on their way to record their largest weekly losses in terms of percentage in more than two years.

“The hostile move from China in response to American customs duties largely confirms that we are heading towards a global trade war,” said Oli Hansen, head of commodity strategies at Saksu Bank. A war in which there are no winners, which will negatively affect economic growth and demand for basic commodities such as crude oil and refined products.

The aggravation of the sale of oil has contributed to the decision of the Organization of Petroleum Exporting Countries «OPEC) and its allies, known as OPEC+, to accelerate the plans for increasing production, as the group now aims to return 411 thousand barrels per day to the market in May, instead of 135 thousand barrels per day as it was previously planned.