- WTI is down $3.59 to $55.99/Bbl on Wednesday morning (7:45 AM CT)
- WTI crude fell sharply as Washington implemented a 104% tariff on a broad range of Chinese goods after midnight
- In response, China raised tariffs on US goods from 34% to 84%, effective April 10
- Crude futures have dropped nearly 20% over the past week, as President Trump’s “Liberation Day” tariffs and Chinese retaliation dampened risk appetite across markets
- Brent crude fell below $60/Bbl for the first time since 2021
- Put options surged to their highest premium over calls since late 2021, signaling bearish sentiment (Bloomberg)
- A contango structure is forming across the crude futures curve beyond September, indicating expectations of excess supply or softening demand
- The selloff mirrors a broader market rout, with global investors pulling out of stocks and bonds
- The tariff escalation has prompted a reassessment of global demand outlooks
- Losses are further exacerbated by OPEC+ moving to ease production curbs more aggressively than expected
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