By Dominic Chopping

The oil and gas sector is among the biggest losers in midday European trade, with investors digesting a "quadruple whammy" of oil market pressures, SEB commodities analyst Ole R. Hvalbye said.

The Stoxx Europe 600 Oil & Gas index is 6.75% lower Monday.

The price of Brent crude has fallen by around $13 a barrel since last Wednesday's high to trade at $62.80 Monday, as U.S. tariffs, OPEC+ production plans, Chinese tariff retaliation and Saudi Arabia price cuts have all contributed to driving the price lower.

President Trump's tariffs on imports into the U.S. has fueled concerns of an economic slowdown that would weaken global oil demand, Hvalbye said.

An expected flood of extra oil onto the market is also hitting prices, after the Organization of the Petroleum Exporting Countries and its allies last week unexpectedly announced plans to raise production in May by 411,000 barrels per day--three times the planned amount.

In China, officials are meeting force with force by imposing 34% tariffs on all U.S. goods, in a move that raises fears of an economic slowdown due to reduced global trade, which would consequently weaken global oil demand going forward, Hvalbye added.

Elsewhere, Saudi Arabia slashed its flagship crude price by the most in over two years. It reduced the May official selling price of Arab Light crude by $2.30 per barrel for Asia while also cutting prices to Europe and the U.S.

"These four key factors have driven the massive price drop over the last four trading days," Hvalbye said.

"The overarching theme is the fear of weaker demand and stronger supply. The escalating trade war has raised concerns about a potential global recession, leading to weaker demand, compounded by the surprisingly large output hike from OPEC+."

European natural-gas prices also plunged Monday, following broader commodity markets lower. The benchmark Dutch TTF contract traded 3.7% lower at 35.05 euros a megawatt hour around midday and was down 14% on the week.

Shares in Shell traded 6.5% lower, with investors also reacting to a first-quarter update that disclosed lower gas production and higher taxes. BP shares traded 5.1% lower while TotalEnergies shares were down 4.5% and Equinor shares fell 3.2%.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 07, 2025 06:51 ET (10:51 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.