Oil tumbles 6%, posts worst week in 18 months

Oil drilling rigs

Oil prices extended their losses on Friday, hitting their lowest levels in more than three years, after China imposed tariffs on US goods — escalating fears of weakening demand amid a full-blown trade war.

At settlement, Brent crude futures for June delivery fell 6.5%, or $4.56, to $65.58 a barrel, snapping a three-week winning streak. The benchmark posted a weekly loss of 9.85%, marking its steepest weekly decline in a year and a half.

Meanwhile, WTI crude futures for May delivery dropped 7.4%, or $4.96, to $61.99 a barrel, also ending a three-week rally. The contract fell 10.65% this week, its sharpest weekly decline in two years.

China announced a reciprocal 34% tariff on all US goods starting April 10. This comes amid heightened global tensions as countries prepare to respond, following President Trump's move to raise tariffs to their highest level in over a century.

Goldman Sachs lowered its Brent and WTI price targets by $5 each, to $66 and $62 per barrel respectively, for December 2025, Reuters reported.

Meanwhile, HSBC cut its forecast for global oil demand growth in 2025 to 0.9 million barrels per day, down from 1 million, citing tariffs and OPEC+’s decision to proceed with production increase plans.