Rabat – Oil prices have dropped to the lowest level in four years on Wednesday, which was withdrawn through growing fears of the global economy when the trade dispute between the USA and China took a harder turn.
Accordingly ReutersThe Fallout stretched beyond crude oil and weighed the markets from coffee to copper.
The recent downturn in global raw material markets followed a new escalation in the US China trade dispute, which was triggered by the decision of Washington’s decision to meet new tariffs.
The move, which includes a duty of 104% for certain Chinese imports. effective Shortly after midnight and sent waves through raw material and stock markets, which increases the fears of slowing down global demand.
US President Donald Trump framed the measure as part of what he describes as a “liberation day” agenda, a broader advance, China and several other trading partners to impose strong tariffs. Trump defended the decision during a recent campaign dinner and insisted that it was time for the United States to defend himself against what he described as unfair trade practices for years.
“Now it is our turn to make it tearing,” he said and accused China, the US economy “right and left”. He also aimed at the former administration and argued that Washington was too forgiving in global trade negotiations as part of the former President Joe Biden.
Now the markets in Asia and Europe closed lower, while the raw materials continued to feel pressure. Analysts of Anz reported that the oil prices “extended losses in the trade war equipment” and added that copper has already lost almost 10% since the first announcement of higher tariffs.
Crude oil has now replaced around 20% of its value since the beginning of April and has marked the steepest decline in over two years. Brent crude oil fell to $ 60.31 per barrel, by 2.5%, while West Texas touched $ 57.02.
Ole Hvalbye, analyst at SEB, attributed the film to a combination of falling demand expectations and the decision of Opec+to facilitate production limits faster than expected. “It’s a toxic mix,” he said, “and it floods the market with uncertainty.”
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Morgan Stanley revised his oil forecasts in view of the downturn and cut off his estimates for Brent crude oil in the second quarter and third and fourth quarter to $ 65 and $ 62.50.
The effects of the trading dispute also achieved soft goods. The coffee prices went back sharply, with both robusta and Arabica varieties reaching four-month levals. Kocao followed the example and sagged the lowest point in London and New York in five months.
According to market consultant Michael J. Nugent, the bullish dynamic in coffee has probably come to a standstill. “If a weather shock comes into play like a frost, there is not much more to support prices,” he said. “The headlines of the tariff cannot be fulfilled.”
Copper, often regarded as a Bellwether for industrial demand, continue to slide. On the London Metal Exchange, the three-month copper dropped to $ 8,650.50 per ton, which extended a decline that reached a maximum of more than $ 10,000 after the end of prices at the end of March. Chinese copper contracts reflected the fall, put under pressure, which were put under pressure by the higher US obligations on Beijing.
The natural gas prices in Europe also weakened. According to data from LSEG, the Dutch front month contract fell by € 2.3% to € 34.80 per megawatt hour. The dealers pointed out on a broader market unit and postponement of the offer expectations.
While most raw material markets were lower, gold prices rose by 2%when investors turned into safer assets. Soybeans also recovered for a third session in a row. Rising prices in Brazil and softer support in the amount of dollars that contributed to the fact that the market recovered after a four -month deep at the beginning of the week.
Despite these exceptions, the overall picture remains fragile. With trade voltages and new US tariffs that intensify and the uncertainty that the prospects clouded, the markets seem to be equipped for further turbulence.
