Markets

The week witnessed significant turbulence in the crude oil futures market, primarily driven by escalating trade tensions initiated by US President Donald Trump and the evolving output strategy of the OPEC+ alliance.

President Trump's new tariffs have sparked fears of slowing global economic growth, leading to a significant drop in crude oil prices despite oil not being directly targeted.

Early April 2025 witnessed a dramatic and rapid descent in crude oil prices, plummeting to levels not seen in four years.

The largest producer in the Middle East has aggressively cut its official selling prices for crude oil, particularly for Asian markets, by the largest margin in over two years.

Despite a sharp decline in oil prices to multi-year lows, an OPEC+ committee meeting on Apr. 5 emphasized the critical need for member nations to adhere to their production quotas and compensation plans.

Analysts predict a complete cessation of US crude oil exports to China due to the escalating tariff and trade war between the world's two largest economies.

The week witnessed significant volatility in crude oil futures, primarily driven by US President Donald Trump's rhetoric regarding sanctions on Russia and Iran, the implementation of new tariffs, and a surprising shift in OPEC+ production policy.

The global oil market is facing a complex interplay of geopolitical threats, aggressive trade policies, and supply-side adjustments, all contributing to unprecedented volatility.

The oil cartel began Mar. with a production decrease to 27.43 MM /d, down 110K b/d, aiming to improve member compliance with quotas, particularly in Nigeria and Iraq.

The Jan. output in the US fell to 13.15MM /d, the lowest level in over a year, according to the US Energy Information Administration (EIA).