Oil prices sink to 2021 lows as tariff war fans recession fears

[SINGAPORE] Crude oil prices have plunged to their lowest levels since 2021, when Covid curbs hurt business activity, amid an escalating tariff crisis that is fuelling trade war recession fears and sparking a broad sell-off in commodities tied to global growth.

For oil prices, long buoyed by geopolitical tensions and production cuts, the sudden reversal marks a shift in market psychology – from supply risk to collapsing demand.

Brent and US West Texas Intermediate crude futures fell by over 2 per cent on Tuesday (Apr 8) to US$64.21 and US$60.70 a barrel, respectively – their lowest levels since April 2021 – when global demand was still reeling from Covid-related business disruptions. This was after both crudes fell more than 6 per cent for two consecutive days.