LONDON: Oil prices plunged on Friday to the lowest level since 2021 and commodities including natural gas and soybeans also dived as China retaliated against US President Donald Trump’s aggressive tariffs.

Brent futures fell $5.29, or 7.5pc, to $64.85 a barrel and US West Texas Intermediate crude futures lost $5.57, or 8.3pc, to $61.83 a barrel. The oil benchmarks were set for the lowest close since the middle of the pandemic in April 2021.

Natural gas prices in Europe and Asia also took a tumble. European gas prices to plunged their lowest in over six months, with the Dutch front-month contract down 3.02 euros, or 7.7pc at 36.45 euros per megawatt hour (MWh) or $11.78/mmBtu, LSEG data showed.

Asian spot liquefied natural gas (LNG) prices also remained at their lowest level in nearly six months.

“This is the first very explicit escalation from China, they are not backing down, they are upping the game,” said Bjarne Schieldrop, chief commodities analyst at SEB. He is expecting further retaliation from Trump.

Published in Dawn, April 5th, 2025