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

BRENT crude oil price plummeted below $64 (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, trading at its lowest level in nearly two years and shaving over 35% off Saudi’s share value in the near term.

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.

The latest stance is set against a backdrop of existing further straining trade relations.

In response, Chinese officials have vowed to swiftly fight back and unveiled a series of swift and intensive measures aimed at stabilising the capital markets and restoring investor confidence, signalling no dawdling in its backdown in the face of US pressure.

Nigel Green, CEO and founder of deVere Group, said China was sending an unambiguous message to Washington that it would swiftly retaliate if the impending trade war, and it was not backing down.

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