U.S. commodity markets dropped sharply this week, raising fresh concerns about an approaching economic slowdown. Recession fears hit markets hard, pulling oil, metals, and other raw materials into a rapid decline.
On Monday, oil prices fell nearly 3%, reaching their lowest point since 2021. Brent crude and U.S. West Texas Intermediate both sank more than 10% over the past week. Analysts point to trade tensions and weakening demand as key factors. Recession fears hit markets as the trade war between the U.S. and China deepens.
China recently imposed new tariffs of 34% on U.S. goods. This move followed President Trump’s decision to maintain aggressive tariff policies. Wall Street banks quickly revised forecasts, warning about the rising risk of recession.
Meanwhile, gold prices dropped after reaching a record high last week. The broader sell-off impacted coffee and metals as well. Traders are now exiting positions, triggering what some analysts describe as a deleveraging phase.
“Volatility continues to grow,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Investors are reducing positions across the board.” The statement highlights the mounting uncertainty around global trade and demand.
Natural gas prices also slipped. In European markets, the Dutch front-month contract dropped to $11.26 per million British thermal units. Although these prices are tracked overseas, U.S. markets often feel the ripple effects quickly.
At the same time, investment banks like Goldman Sachs and Citi have adjusted their oil price forecasts downward. These updates reflect falling demand and increased output expectations from major oil producers.
Clearly, recession fears hit markets with full force. Every major indicator now reflects the uncertainty shaking U.S. business confidence. As long as trade tensions continue, commodity prices may remain under pressure.
With traders watching every move closely, recession fears hit markets will likely remain the leading headline for weeks to come.
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