Oil prices plunged to a four-year low and traded below $60 a barrel on Wednesday, while some commodities, including coffee, plunged as the trade war between China and the United States escalated, with Beijing announcing higher tariffs on U.S. imports.

Asian and European equities fell and U.S. markets opened slightly lower as the imposition of steep U.S. tariffs, including a 104 percent duty on some Chinese goods, deepened fears of a global recession.

In retaliation, China said it would impose tariffs of 84 percent on U.S. goods starting Thursday, up from the previously announced 34 percent.

The European Commission also said it would press ahead with the first set of retaliatory measures starting April 15 against Trump's steel and aluminum tariffs. Oil prices plunged to their lowest levels in more than four years, with Brent crude falling below $60 a barrel. "Concerns about weakening global oil demand, combined with OPEC+'s decision to ease production sooner than expected, have created a toxic mix that is fueling concerns about an oversupplied oil market," said SEB analyst Ole R. Hvalbye.

Brent crude fell $2.47, or 4.8%, to $59.81 a barrel by 1443 GMT. U.S. West Texas Intermediate crude fell 4.1%, to $57.12. Oil has lost about a fifth of its value since Trump announced higher tariffs on a number of U.S. trading partners on April 2, the biggest five-day decline since March 2022.

Morgan Stanley analysts lowered their Brent crude price forecasts by $5 a barrel to $65 for the second quarter, $62.50 for the third quarter and $62.50 for the fourth quarter. (Newsmaker23)

Source: Reuters