Brent and U.S. crude oil prices fell over $2 per barrel, or more than 3%, on Friday as President Trump’s threat of increased tariffs on China raised concerns about global demand.

Brent settled at $62.73, its lowest since May 7, while West Texas Intermediate (WTI) fell to $58.90, marking its lowest level since early May.

Analysts cited a combination of factors including OPEC production increases, higher output in the Americas, easing geopolitical tensions after the Gaza ceasefire, and Trump’s tariff threats as driving the sell-off.

The Gaza ceasefire, ratified by Israel and Hamas, shifted market focus back to a looming oil surplus as OPEC+ unwinds production cuts, despite a smaller-than-expected November output hike, Reuters has reported.

Additional concerns include a potential U.S. government shutdown, which could weaken domestic demand in the world’s largest oil-consuming country.