The decline in oil prices has picked up speed since last Friday, primarily due to escalating trade tensions and increasing fears of a potential recession in the United States, according to Frederik Romedahl, an FX analyst at Danske Bank.
With the latest developments, it seems oil prices are on a steeper downward path. “The OPEC+ decision made on Thursday implies that there’s no significant support to halt the decline in oil prices,” Romedahl notes. “If this week witnesses further retaliation from major countries or if it becomes apparent that the US will proceed with its substantial tariff increases, we could easily see oil prices falling below $60 a barrel and potentially dropping even further.”
