U.S. oil prices dropped below $60 a barrel on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
The decision by key OPEC+ producers last week to increase the pace of production hikes has also put downward pressure on oil prices. Saudi Aramco on Sunday slashed the price of its flagship Arab Light crude.
Futures tied to U.S. West Texas intermediate crude hit a session low of $58.95 per barrel. Global benchmark Brent fell to an intraday low of $62.51.
U.S .crude oil was last down 2.4%, or $1.49, at $60.50, while Brent was down 2.24%, or $1.47, at $64.11. The benchmarks were trading at their lowest levels since 2021.
The latest price action comes after U.S. crude and Brent closed down more than 10% last week.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Goldman Sachs on Sunday lowered its oil price forecast for December 2025 by $4 to $58 per barrel for U.S. crude and $62 for Brent. The investment bank sees prices falling further in 2026 with U.S. crude and Brent averaging $55 and $58 per barrel, respectively.
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan.
The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
It is difficult to predict the overall direction of developments as countries are likely to seek lower tariff rates through negotiations with Trump, said Natasha Kaneva, head of global commodities research at JPMorgan, in a Friday note.
For oil prices, however, “the trajectory is unmistakably one-way,” Kaneva said.
