Fears that Donald Trump's new trade tariffs could trigger a global recession have sent oil prices plummeting - and drivers will benefit at the pumps with petrol tipped to fall below 130p a litre within days.
Oil prices plunged to an even deeper four-year low on Wednesday after China announced additional tariff measures on US goods in retaliation against the President's trade policy.
China will impose 84 per cent tariffs from Thursday, up from the previously announced 34 per cent, the finance ministry said.
Brent Crude dropped on the news to $59 a barrel while West Texas Intermediate (WTI) crude slipped to $56.
Brent and WTI have now fallen for five consecutive sessions since Trump announced sweeping tariffs on most imports on 'Liberation Day', prompting concerns over economic growth and demand for fuel.
And UK motorists should start reaping the reward with cheaper fill ups before Easter, according to the RAC.
It believes unleaded will dip from today's 136p per litre to around 130p within a week - the lowest UK average price for four years - and even further on the back of weakening economies.
Oil prices plunged to an even deeper four-year low on Wednesday after China announced additional tariff measures on US goods in retaliation against the President's trade policy
Exacerbating oil's decline was a decision last week by the OPEC+ group of producers to raise output in May by 411,000 barrels per day, which analysts say is likely to push the market into surplus.
'Some US analysts suggested that the White House wants to drive oil prices closer to $50 as the administration believes that the US oil and gas industry can survive a period of disruption,' said Panmure Liberum analyst Ashley Kelty.
'We see this goal as somewhat delusional... and (it) will merely see US production shut in and open the door for OPEC to reclaim its position as the swing producer.'
Goldman Sachs now forecasts that Brent and WTI could edge down to $62 and $58 a barrel respectively by December 2025 and to $55 and $51 by December 2026.
Since 2022, the price of WTI crude oil has generally stayed between $65 and $95 a barrel.
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The RAC says UK drivers should see the benefits of plunging oil prices before the Easter weekend, with 6p predicted to come off a litre of petrol in the next week
UK drivers should see the benefits of the oil crash at forecourts within the coming says, the RAC said.
Its head of policy Simon Williams explained: 'With oil tumbling to its lowest price for four years, drivers ought to see cuts of up to 6p a litre at the pumps ahead of the Easter weekend, when the roads are notoriously busy.'
For as long as the price of a barrel carries on trading around or below the $65 mark, especially during the ongoing scrutiny of the Competition and Markets Authority, which has extended its investigation into the fuel retail sectors, retailers 'will be obliged' to pass on the savings to drivers, Williams said.
If petrol does drop to 130p per litre by Easter, it will be the lowest price paid by motorists since June 2021.
The RAC expects diesel to also drop from 143p per litre currently to 137p - last that low in September 2021.
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