The price of crude oil dropped to its lowest level since 2021 and is down roughly 20% since President Trump announced tariffs last week. Crude prices fell below $58 a barrel, while a recent survey found producers require an average price of at least $65 to profitably drill.

Oil prices fell due to concerns about President Trump's tariffs and potential global recession, with West Texas Intermediate crude briefly dipping below $60 per barrel.

The oil sell-off extended the dramatic drop in prices seen Friday when prices fell by around 8% to the lowest levels since 2021.

The slide in crude prices signals deteriorating confidence in the strength of the economy. U.S. oil prices continued to sink Wednesday morning, falling to about $56 a barrel as China said it would match President Trump’s tariffs blow for blow.

The price fell to $58.60 in morning trading in London and hovered close to $60 throughout the day, marking a roughly 18 per cent drop over the past five days as Trump has pushed ahead with tariff plans.

Oil prices climbed more than 4% on Wednesday, bouncing back from four-year lows earlier in the session, after U.S. President Donald Trump said he would further increase tariffs on China but pause the tariffs he announced last week for most other countries.

Oil prices fell around 1% on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.

Oil prices continued to climb in late trading Wednesday, with benchmark U.S. crude futures rising to about $63 a barrel. That's up from Tuesday's settled price of $59.58, which was the lowest in four years.

Oil prices surged from a four-year low on Wednesday and gold rallied in a broad-based commodities and equity market rebound after U.S. President Donald Trump said he would temporarily lower recently enacted tariffs on dozens of countries while further increasing duties on China.