Oil drops further as fears of global recession rise

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Oil prices fell on Monday, as US president Donald Trump indicated that he would apply to collect global customs duties despite the decrease in stock markets and increasing fears of recession.

Brent crude decreased by 2.5 percent to $ 63.94 a barrel early in the afternoon in London-a four-year low level and 15 percent decreased during the past five days-an indication of deepening fears that the global economy is heading to a sharp slowdown.

Trump’s “Liberation Day” announcement followed the definitions last Wednesday, hours after an unexpected step by the OPEC+ to enhance oil production.

“I think this is very dangerous. I don’t think we are in the world of 2008 yet, but certainly [expecting] “A great slowdown in the global economy this year,” said George Leon, head of geopolitical analysis at Rystad Energy.

Some analysts said that low oil prices may make them very low for some higher cost producers in the United States, or to hinder Trump’s promise to increase local production, or what he called “drilling, child, drilling.”

However, it seemed that the president welcomed a decrease in crude, after he pledged to reduce costs to American consumers.

In a post on the social truth on Monday, Trump wrote: “Oil prices have decreased, and interest rates decreased (the slow -price federal reserve bank must reduce prices!), There are no food prices, and there is no inflation, and the United States of America that has long been dealt with brings billions of dollars a week from the countries offered to the definitions that exist.”

On Sunday note, Goldman Sachs analysts reduced their expectations in oil prices in the wake of economists who predict the US economy “recession” and increase the risk of recession. They now expect Brent raw in a rate of $ 58 a barrel in 2026 and western Texas at $ 55 a barrel.

They added: “The risks facing our oil prices are still on the downside, because the risk of stagnation has grown more and because OPEC+ supplies may rise more than we assume.”

“Our economists have also raised the possibility of American recession for 12 months from 35 percent to 45 percent and indicated that they would change their expectations to the recession if the White House implemented most of the April 9 tariff.”

Morgan Stanley said, in a memorandum on Monday morning, that a 12.5 percent decrease in Brent crude between the end of Wednesday and the end of Friday did not happen until 24 times – 22 of which were linked to the chips.

It reduces its basic expectations for oil for oil for the second half of this year by about 550,000 barrels per day.

“We appreciate that our previous BRNT expectations of” $ 60 high “in [the second half] He added that from the year it will not be investigating and changing this to “60 dollars low,” he added.

“The dramatic stagnation of crude oil since last Wednesday. Prices have moved to levels that you may soon see that the supply is affected negatively as high -cost producers, especially in the United States, they have to reduce production goals, which supports installation.

The decision taken by eight members+ plans to reflect the productive cuts means that it will increase production by 411,000 barrels in May, up to a previous goal of 122,000 barrels/d.

Tensions between members have followed different degrees of commitment to production cuts, with Kazakhstan constantly pumping over its share.

The shares in the main oil producers in the United Kingdom decreased on Monday morning, as Shell decreased 7 percent and BP decreased by 6 percent, which led to twice the broader market.