JAKARTA - Brent oil prices, the global benchmark, dropped nearly 4% to $63.21 per barrel, the lowest level in four years, following an 11% decline last week. At the same time, West Texas Intermediate (WTI) oil was trading at $59.79 per barrel.

This price decline at the beginning of the week, as quoted by Bloomberg, occurred after Saudi Arabia sharply slashed the key selling price of its crude oil, marking the largest cut in over two years. Additionally, the intensifying global trade war has sparked concerns about recession threats and weakening energy demand.

Saudi Arabia’s state-owned oil producer, Aramco, reduced the selling price of Arab Light for its main Asian buyers by $2.30 per barrel for May delivery. This decision came just days after the OPEC+ alliance announced a production increase significantly larger than market expectations.

Similar to other industrial and agricultural commodities, as well as the stock market, crude oil prices have been under pressure in recent days following the United States' decision to raise tariffs. The drop in oil prices deepened further after OPEC+ decided to boost production beyond market expectations. A combination of demand concerns and increasing oil supply has created a global supply surplus.

Satoru Yoshida, a commodities analyst at Rakuten Securities, said, "Concerns about the impact of tariff wars on the global economy are a major driver of the price drop. The production increase by OPEC+ also adds to the selling pressure."

Yoshida, as quoted by CNBC, predicted that WTI prices could potentially decline further to $55 or even $50 if the stock market downturn continues. Goldman Sachs, a US-based investment bank, projected the annual average price for Brent and WTI crude oil for 2026, citing heightened recession risks and the potential for increased supply from OPEC+ beyond previous expectations. Their new projections are $58 for Brent and $55 for WTI. (DH/LM)