Brent crude oil price fell on Friday to $65.58 per barrel for the first time in four years.

During trading, Brent crude price, the global oil benchmark, depreciated by 7 percent to trade at $65.58 — the lowest since April 2021.

The US West Texas Intermediate (WTI) also dropped by 7.35 percent to 62.03 per barrel.

According to Reuters, the crude oil price dropped as China increased tariffs on US goods in a retaliatory move, sharply intensifying a global trade war that has investors worried about a recession.

On April 2, President Donald Trump announced sweeping global tariffs on all imports into the US, imposing 14 percent on Nigeria.

A day after, Ngozi Okonjo-Iweala, the director-generaI of the World Trade Organisation (WTO), said the recent tariffs announced by US will have significant implications for global trade and economic growth prospects.

The drop in oil prices also follows an increase in oil production by the Organisation of Petroleum Exporting Countries (OPEC) and its allies (OPEC+).

On April 4, the oil alliance decided to increase oil production by 411,000 barrels per day (bpd) in May.

The development followed eight member countries’ decision to phase out oil output cuts.

The current oil price is lower than Nigeria’s 2025 budget target of $75 per barrel.