WTI crude oil recovered some of its losses from Thursday and climbed about 1% after Trump announced more tariffs on China, further escalating the trade war. At the time of writing, WTI crude oil is trading at around $55 per barrel.

Following the Federal Reserve’s decision to cut interest rates by 0.25% and later, Trump’s tariff hike announcement, WTI crude oil had declined by almost 8% on Thursday – the steepest fall in over four years. However, later yesterday, US President Trump declared that he would impose 10% tariffs on $300 billion worth of Chinese goods.

Trump also signaled that there may be more tariffs coming in the future unless China works with the US to finalize a trade deal soon. Looks like the truce called during the G20 summit has ended and the trade war is back on again.

Rising global trade tensions have been keeping oil prices under pressure since the beginning of 2019, as traders worry about weakening oil demand in the face of economic slowdown.