Is $60 per Barrel a Bottom – or Just a Trap?
Is $60 per Barrel a Bottom – or Just a Trap? Over the past two weeks, Brent and WTI crude prices have dropped sharply, with Brent falling below $60 per barrel for the first time since February 2021. This decline has been driven by a mix of geopolitical tensions and renewed concerns about oversupply in the market. A key factor is the escalating trade conflict between the U.S. and China. The Biden administration’s introduction of a 145% tariff on Chinese goods has triggered swift retaliation from Beijing, fueling fears of a global economic slowdown and weakening oil demand. At the same time, OPEC+ has announced it will increase output by 411,000 barrels per day starting in May. The decision surprised markets already on edge, and it has added to the downward pressure on prices. In parallel, Saudi Arabia has slashed its selling prices to Asian buyers to the lowest level in four months, which is expected to lead to a surge in exports to China. So—is ...