Part 2/10:
Trump's tariff announcement aimed at numerous countries has shaken global trading practices and created expectations of an impending recession. As history has shown, oil prices are closely correlated with economic performance, generally plummeting during economic downturns as consumer spending tightens. This trend shows that a recession not only decreases output but also limits oil demand, leading to significant drops in prices.
Before Trump's announcement, institutions like Goldman Sachs predicted a 35% chance of recession based on anticipated tariff impacts. Immediately following the announcement, that forecast was adjusted upward to 45%, indicating a stronger belief in impending economic challenges.