WTI plunges to near $60 on fears of global economic turmoil

• The Oil price has posted a fresh four-year low near $58.80 amid escalating concerns over the global economic outlook.
• US President trump has imposed a total of 54% tariffs on China.
• Trump has also announced a 10% baseline tariffs for all of his trading partners.

West Texas Intermediate (WTI) recovers some intraday losses in European trading hours on Monday after sliding extensively to near $58.80 earlier in the day, the lowest level seen in four years. The Oil price is still 3% down near $60.40, at the time of writing.

The black gold is facing significant selling pressure since the first day of April as financial market participants are worried about the global economic outlook after the imposition of reciprocal tariffs by United States (US) President Donald Trump on Wednesday. Trump swept almost half of tariffs on his trading partners of what they charge from the US in addition to a universal 10% baseline import duty.

The scenario is unfavorable for the Oil demand outlook as investors expect higher tariffs by the US and likely countermeasures by other nations will be inflationary and weigh on the global economic productivity.

The imposition of worse-than-expected levies by Trump on his Asian peers, such as China and India, appears to be a major blow to the Oil price. The US has imposed a total of 54% duty on China, totalling 34% reciprocal tariff, 20% levy for pouring fentanyl into the American economy. It is worth mentioning that China is the largest importer of Oil in the world.