Oil back in green after three-day drop despite US-China tariff war escalating

Crude oil traded in the green territory on Tuesday, April 8, after three days of decline.

Brent crude climbed 1.14% to $64.94, while West Texas Intermediate (WTI) rose 1.33% to $61.5.

US President Donald Trump on Monday threatened additional 50% tariffs on China and said he is ready to hold negotiations with other countries.

"If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th. Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately," he said.

Meanwhile, investment banking major Goldman Sachs has revised its annual average forecasts for WTI and Brent in 2026 amid recession risks and a chance of higher-than-expected OPEC+ supply.

The financial services provider trimmed the forecast by 4% for Brent to $58 per barrel and WTI to $55 a barrel.

"Oil prices would likely exceed our forecast if the Administration were to reverse tariffs sharply and deliver a reassuring message to markets, consumers, and businesses," Goldman Sachs said.

Meanwhile, the S&P 500 index closed at a discount of 0.2%, while the Dow Jones Industrial Average fell 0.9%. The Nasdaq composite index settled 0.1% higher.

Japan's Nikkei 225, Hong Kong's Hang Seng, and South Korea's KOSPI indices are up 5.7%, 2.4%, and 1.3%, respectively.