Oil prices fell more than 2% on Monday during a chaotic trading session on Wall Street after President Trump threatened additional tariffs on China, a move which sent stocks lower.

West Texas Intermediate (CL=F) futures briefly dropped below $60 per barrel for the first time since 2021 before trimming losses to settle at $60.70. Brent (BZ=F), the international benchmark, also declined to close at $64.21 per barrel.

President Trump said he would impose additional 50% tariffs on China if Beijing did not remove 34% tariffs announced last week in reaction to Washington’s sweeping levies against its trading partners revealed on April 2.

Crude briefly pared losses as the S&P 500 (^GSPC), Dow Jones Industrial Average (^DJI), and Nasdaq Composite (^IXIC) seesawed between negative and positive territory following a social media headline signaling Trump was considering a 90-day pause on tariffs. The White House subsequently said the headline was ‘fake news.’

As of 7:46:01 PM EDT. Market Open.

CL=F BZ=F

Last week, oil dropped 11% over worries of cratering demand stemming from President Trump’s sweeping tariff policy.

Additionally, over the weekend, Saudi Arabia cut its crude export prices to its Asian buyers by $2.30 per barrel for May, just days after the Organization of Petroleum Exporting Countries and its allies, OPEC+, announced a greater-than-expected output raise next month.

Some Wall Street analysts see a floor on prices ahead.

“We see incentive for defense at $60/b, both from a perspective of OPEC+ budgets and from the perspective that the US Administration likely wants to protect the economics of the US shale industry,” Citi analysts wrote in a note on Monday morning

Energy-related equities (XLE) have led the market declines since President Trump announced sweeping tariffs last Wednesday afternoon.

Last Friday, WTI plummeted more than 7% after China, the biggest importer of crude, announced it would slap additional tariffs of 34% on US goods in reaction to the Trump administration’s sweeping levies.

The levies announced by President Trump last Wednesday sparked a global stock market sell-off. Crude plummeted more than 6% on Thursday, despite energy being exempt from sweeping duties on imports from US trading partners.

“The tariffs, if they stay in place, would be a big hit to the US and global growth, likely pushing the US and global economy into recession this year,” JPMorgan’s Natasha Kaneva wrote on Friday morning.

Crude losses deepened on Thursday after OPEC+ agreed to hike supply by about three times more than previously signaled, or more than 400,000 barrels per day, beginning in May.