Oil markets are facing significant turmoil as prices tumble to four-year lows, driven by escalating tariffs from the US on China and fears of a global recession. The Brent crude oil price has dipped below $60 a barrel, marking a shocking decline influenced by ongoing trade conflicts which are eroding economic confidence and demand for energy. Analysts from Goldman Sachs warn that in a worst-case scenario, oil could plummet even further, potentially dropping to $40 per barrel. U.S. producers are now confronting tough decisions regarding growth and capital returns, as the energy landscape grows increasingly uncertain. Meanwhile, the continued output hikes by OPEC+ have exacerbated the supply glut, leading to further declines in prices. As markets react, the long-term implications for the energy sector remain unclear amidst these tariff-induced challenges.