Brent crude oil prices tumble on escalation of US-China tensions

BRENT crude oil price plummeted below $61 (R1 250) a barrel on Tuesday, marking their lowest point since April 2021, spurred by escalating tensions between the United States and China, raising concerns about future demand for oil as China is one of the world’s largest oil consumers.

- SIPHELELE DLUDLA

The latest OPEC+ output hike planned for May and Saudi Arabia’s plans to cut official selling prices for next month also added to the Brent crude oil price pressure, it trading at its lowest level in nearly two years and closing 0.9% off at $62.97 a barrel late on Tuesday.

US President Donald Trump has heightened the stakes in the ongoing trade dispute between the two giants, threatening an additional 50% tariff on a range of Chinese imports.

This potential move is set against a backdrop of existing tariffs, further straining trade relations.

In response, Chinese officials have vowed to swiftly respond and unveiled a series of swift and intensive measures aimed at stabilising the capital markets and restoring consumer confidence, signalling an unwillingness to back down in the face of US pressure.

Nigel Green, CEO and founder of deVere Group, said China was sending Washington a clear message that a trade war was not backing down.

Green said the clearest signal came through the yuan, which was quietly sliding lower, a strategic warning shot that said US trade devaluation can and will use currency devaluation as a potent countermeasure.