Home > Business > Finance

Commodity prices in flux, oil dips under $60 after Trump tariff announcement

Published: 08 Apr. 2025, 07:00

Gold bars at Incheon International Airport Customs Office in Incheon on March 5. [JOONGANG ILBO]

Fears of a global recession have intensified following U.S. President Donald Trump's announcement of reciprocal tariffs, sending shock waves through global commodity markets.

Oil prices have dropped sharply in recent days. On Monday, West Texas Intermediate (WTI) crude fell 2.7 percent in a day to $60.29 per barrel on the New York Mercantile Exchange (Nymex).

Compared to $71.20 per barrel earlier this month, before the tariff announcement, WTI has plunged 15.3 percent in just four trading sessions.

At one point during the session, prices even dipped below the $60 threshold — a level not seen since April 2021 on a closing basis. Brent crude, which began the month at $74.49 per barrel, has similarly plummeted to $62.79.

According to a Bloomberg report on Monday, Goldman Sachs lowered its year-end Brent crude price target to $62 per barrel, citing increased risks of a global recession.

Natural gas, which had seen price gains earlier this year due to cold weather, has also given up most of its gains amid the escalating trade war. U.S. natural gas was trading at $3.75 per metric million British thermal unit (mmBtu) on Monday, down 5 percent from the start of the month.

Copper, often referred to as “Dr. Copper” for its ability to signal economic trends, fell to $4.38 per pound — a 13.1 percent drop from earlier this month. This marks a significant reversal after copper prices surged to more than $5.20 in March on expectations of Chinese stimulus measures.

“Because copper is used across nearly all industrial sectors, recession fears immediately put downward pressure on prices,” said Kim Kwang-rae, a researcher at Samsung Futures.

An employee works at LS MnM's Onsan copper smelter in Ulsan in August, 2023 [YONHAP]

As the trade war escalates, safe havens are becoming harder to find.

Even gold, a traditional refuge in times of economic uncertainty, dipped below $3,000 per ounce. As of 9:30 a.m. on Monday, gold futures were down 1.12 percent at $2,999.70 per ounce on the Nymex.

On Friday, gold had already dropped nearly 3 percent in a single session. Market analysts attribute the fall to investors who suffered losses in global equities selling off gold holdings to secure liquidity.

Many experts believe commodity markets will remain volatile in the near term.

“With the United States and China locked in an increasingly hard-line standoff, recession fears are deepening,” said Hwang Byung-jin, a researcher at NH Investment & Securities. “Excluding precious metals like gold, we could see broader commodity price declines triggered by panic selling.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY YEOM JI-HYEON [[email protected]]