Crude oil prices tumbled sharply on Wednesday, with both global and Indian benchmarks slipping over 3.5% amid heightened investor anxiety over trade-related uncertainties. The decline follows a wave of sweeping tariffs announced by U.S. President Donald Trump targeting major trading partners including China.
West Texas Intermediate (WTI) crude for May delivery dropped by 3.83% to $56.93 per barrel, shedding $2.26 during the session. Meanwhile, Brent crude futures for June settlement were also down over 3.5%, trading near $60.62 per barrel.
Indian oil futures mirrored the global trend, with crude oil on the Multi Commodity Exchange (MCX) slipping by 3.46% or ₹180 to trade at ₹5,017 per barrel.
Traders cited fears over weakening global demand and intensified trade frictions as key contributors to the price decline. Although tensions in the Middle East persist, the market seems more focused on the economic ramifications of Trump’s retaliatory tariff strategy. With China now facing a cumulative 104% tariff on its exports to the U.S., uncertainty looms over energy demand from one of the world’s largest oil importers.
The sentiment was further strained by China’s refusal to withdraw its 34% retaliatory tariff on American goods. While China’s latest White Paper called for dialogue, it also emphasized the country’s readiness to “fight till the end” with a suite of countermeasures.
As oil continues to be a sensitive barometer for geopolitical and trade shocks, analysts expect further volatility in prices if tariff tensions deepen.
