Oil prices continued to plunge Monday in the fallout from President Donald Trump’s sweeping tariffs, with domestic prices hitting as low as $59 per barrel in early trading. 

While prices appeared to recover slightly by midmorning, both international and domestic benchmarks saw prices drop by over 2% around 11:30 a.m. EST. At the time, Brent Crude prices were down 2.09%, trading at $64.21 a barrel. West Texas Intermediate also dropped by 2.58% and was priced at $60.39 per barrel. 

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The oil selloff extended the dramatic drop in prices seen Friday when prices fell by around 8% to the lowest levels since 2021.

Financial institutions also moved to lower their short-term oil forecasts for Brent Crude, with Citi cutting its three-month forecast to $60 per barrel. Goldman Sachs also lowered its 2026 forecasts, with Brent at $58 a barrel and WTI at $55 per barrel.

The price of oil worldwide has dived since last Wednesday, when Trump announced sweeping tariffs on dozens of countries. These tariffs included a baseline 10% tariff on all exports to the United States, with minimal exceptions, and higher tariffs on nations with large trade surpluses with the U.S. 

Other nations have since responded to the tariffs, with China announcing an additional 34% tariff on all U.S. goods starting April 10. The European Union was also expected to unveil similar retaliatory measures Monday. 

The cost of oil is expected to remain on a downward trend in the coming days and weeks. In its most recent oil markets analysis, J.P. Morgan projected that Brent Crude would close out the year at around $64. 

“While it is currently difficult to predict the overall direction of developments, we believe that, for oil prices, the trajectory is unmistakably one-way,” the bank’s research analysts said. 

The recent selloff has also been fueled in part by OPEC+’s decision to quicken its planned hike in oil output by increasing production more than expected in May. Last week, members Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman agreed to increase oil production by 411,000 barrels a day starting next month — triple the amount expected. 

While some analysts suggested the timing of this announcement indicated the oil price slump won’t last long, many said all signs point to continued downward pressure. 

“Directional risk for prices continues to lean towards the downside,” Hunter Kornfeind, an analyst with Rapidan Energy Group, told the Washington Examiner. Kornfeind predicted that this could be reversed if OPEC+ pulls back on production or macroeconomic sentiment improves after taking a toll driven by Trump’s tariffs.

Fears have grown among investors and energy analysts, who are worried the recent tariffs from the U.S. could send the market into a global trade war that would curb economic growth and demand for energy. 

This is expected to continue to put downward pressure on prices, offering some relief to consumers. However, it likely will make it more difficult for oil and gas producers to carry out Trump’s “Drill, Baby, Drill” agenda, as forecasts have suggested firms will need to see the cost of oil sitting in the mid-$60s to see profitability and increased drilling domestically.   

In its latest oil market analysis, Rystad Energy predicted that U.S. oil and gas operators could be forced to slow production growth in the coming months.

“The business model embraced by US oil producers over the past several years becomes far more difficult to maintain with prices below this level,” said Matthew Bernstein, Rystad Energy’s vice president for North American Oil and Gas.

If prices remain pressured, Bernstein predicted that operators would need to sacrifice a combination of near-term activity levels, investor payouts, or inventory preservation. Rystad Energy has suggested that with prices in the low $60s, mid-cap public companies in the Permian Basin are most at risk.

OIL PRICES DROP TO LOWEST LEVELS IN THREE YEARS

“While different companies have different sensitivity to the above factors, activity and production will be threatened the most,” he said.

The volatile market has also fueled fears of a recession. On Monday morning, Goldman Sachs raised its 12-month recession probability to 45%, citing policy uncertainty, tightening financial conditions, and foreign consumer boycotts as a result of the Trump tariffs.