05.04.2025 10:50
Brent crude oil prices have fallen below $65 for the first time since August 2021 in global markets. There is a discussion about updating the current figures, which have been priced above $70, to implement a reduction in pump prices.
The additional customs decisions of the USA have deeply affected the oil market as well. However, unlike the usual reflection of the dollar increase and the rise in oil markets as a price hike, this time, the drop in Brent oil has created expectations for a decrease in pump prices.
7% DROP IN OIL PRICES
The price of Brent crude oil has decreased by 7%, falling below $65 per barrel for the first time since August 2021. The announcement by the US administration on April 2 that it would impose at least a 10% tax on goods imported from many trading partners has strengthened expectations that the deepening global trade wars will restrict oil demand, affecting this decline.
PRODUCTION WILL INCREASE
In a statement made yesterday by the OPEC+ group, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producer countries, it was announced that they would end the voluntary production cut of 2.2 million barrels per day as of April 1 and increase production by 411,000 barrels per day in May, which also supported the downward movement of prices. As of 14:41, the price of Brent crude oil in international markets is trading at $64.76, down 7% from the closing. At the same time, West Texas Intermediate (WTI) crude oil is being sold at $61.39 per barrel. Oil prices have dropped by 8% after US President Donald Trump's new tariffs prompted China to respond with additional tariffs, and they are preparing to close at the lowest level since the coronavirus pandemic in mid-2021.