Oil prices slump after Trump’s tariff threat against China

Oil prices tumbled on Monday after US President Donald Trump said he would sharply raise tariffs on Chinese goods this week, risking the derailment of trade talks between the world’s two biggest economies.

Brent crude futures were at $70.31 per barrel at 1124 GMT, down 54 cents. Brent earlier hit its lowest since April 2 at $68.79.

US West Texas Intermediate (WTI) crude futures were at $61.31 per barrel, down 63 cents. WTI hit $60.04 earlier in the session, its lowest since March 29.

Trump said on Twitter on Sunday that he would hike US tariffs on Chinese goods this week, pulling down global financial markets, including oil futures.

“Trump’s sudden hard line on China tariffs has spooked investors, who are scrambling to reduce their risk levels in the markets,” said Jasper Lawler, head of research at futures brokerage London Capital Group.

“The prospect of months of trade talks being derailed by Trump has raised concerns over future demand for oil,” he added.

Chinese Foreign Ministry spokesman Geng Shuang told a news briefing on Monday that a Chinese delegation is still preparing to go to the United States for trade talks.