Brent crude oil prices fell sharply [1] on Friday, hitting their lowest level since 2021, amid a series of developments in global trade and energy markets. The benchmark price for Brent crude dropped nearly 6% by the end of trading, closing at $65.58 per barrel. That marks a significant decline from $74 per barrel at the beginning of the week.
The steep drop in oil prices comes on the heels of several major announcements, including new trade measures from the United States and production shifts from OPEC Plus.
Brent #oil [2] drops below $65/barrel for the first time since August 2021.
For the latest news and updates, visit: https://t.co/by4FF5o0Ew [3] pic.twitter.com/GeJzT4ngEu [4]
— NDTV Profit (@NDTVProfitIndia) April 4, 2025 [5]
Earlier this week, President Donald Trump announced a broad expansion of tariffs [6] on imports entering the United States. The tariff package includes a 25% tariff on foreign companies that purchase oil and gas from Venezuela and then re-export products to the U.S.
The move is part of a larger strategy aimed at reducing America’s trade deficits and encouraging domestic energy independence.
The White House stated that the new tariffs are designed to hold foreign countries accountable for exploiting trade loopholes that allow energy to be rerouted through intermediaries.
U.S. officials say these tactics have undercut American energy producers and provided financial support to regimes hostile to U.S. interests, including Venezuela.
In response to the new U.S. tariff measures, China [7] announced on Friday that it would impose retaliatory tariffs of its own. Chinese trade officials stated that a 34% tariff would be applied to certain U.S. goods, further escalating trade tensions between the world’s two largest economies.
The market also reacted to an announcement from OPEC Plus, the oil-producing alliance led by Saudi Arabia and including Russia [8] and other major producers.
According to the New York Times, the cartel confirmed plans to increase oil production starting in May. The decision to boost output comes as global inventories remain elevated and concerns grow about a slowdown in global demand.
The combined impact of increased supply and heightened trade friction has added downward pressure on oil prices. Analysts said Friday’s drop reflects both immediate market uncertainty and long-term questions about global energy flows under new tariff regimes.
This week’s developments follow a broader pattern of volatility in energy markets that began earlier in the year, when prices briefly spiked due to tensions in the Middle East.
The recent decline, however, signals a shift in market dynamics, with traders now focusing more on structural changes in trade policy and production levels.
Energy sector stocks also showed signs of strain on Friday, with several major U.S. oil and gas companies seeing stock price declines in response to the news.
Oil prices have fallen to a four-year low due to a surprise output increase by OPEC+ and escalating global trade war. Brent prices are down 13% in two days – heading below $65 a barrel.
Will Kennedy reports https://t.co/SAeQQTQbMS [9] pic.twitter.com/b1qQV88Ns6 [10]
— Bloomberg TV (@BloombergTV) April 4, 2025 [11]
Officials in Washington have indicated that additional measures may be taken in the coming weeks to further address energy trade concerns.
OPEC Plus is expected to provide additional guidance on its production strategy at its next meeting in early May. In the meantime, global oil markets are likely to remain volatile as traders assess the long-term impact of new tariffs and increased output on supply and demand.