COMMODITIES-Oil hits 4-year low, coffee and EU gas fall as trade war intensifies

By Naveen Thukral and Susanna Twidale

SINGAPORE/LONDON April 9 (Reuters) - Oil prices fell to a four-year low and traded below $60 a barrel on Wednesday, while several commodities, including coffee, tumbled as the trade war between China and the U.S. escalated, with Beijing announcing steeper tariffs on U.S. imports.

Asian and European equities fell and U.S. markets opened slightly lower as the rollout of steep U.S. tariffs, including a 104% duty on some Chinese goods, deepened fears of a global recession.

In retaliation, China said it would impose 84% tariffs on U.S. goods from Thursday, up from the previously announced 34%.

The European Commission also said it would press ahead with a first set of countermeasures from April 15 against Trump's tariffs on steel and aluminium.

Oil prices dropped to their lowest in more than four years, with Brent futures dipping below $60 a barrel.

"Fears of weaker global oil demand, combined with the OPEC+ decision to loosen output more quickly than expected, have created a toxic cocktail fuelling concerns of an over-supplied oil market," said SEB analyst Ole R. Hvalbye.

Brent futures LCOc1 were down $2.47, or 4.8%, to $59.81 a barrel at 1443 GMT. U.S. West Texas Intermediate crude futures CLc1 were down 4.1%, at $57.12.

Oil has lost about one-fifth of its value since Trump announced higher tariffs on a range of U.S. trading partners on April 2, the biggest five-day drop since March 2022.

Morgan Stanley analysts lowered their price forecasts for Brent crude by $5 a barrel to $65 for the second quarter, $62.50 for the third quarter and $62.50 for the fourth.

COFFEE AND GAS

World coffee and cocoa prices hit fresh multi-month lows.

"In our view, the bull market (in coffee) is likely over unless a fresh fundamental catalyst — such as a frost — emerges. The breathless headlines about tariffs will likely continue," said broker and consultant Michael J Nugent.

Both robusta LRCc2 and arabica KCc2 coffee futures traded on the ICE exchange hit their lowest in more than four months, while London and New York cocoa LCCc2, CCc2 hit five-month lows. In other soft commodities, raw SBc1 and white sugar LSUc1, hit one-month lows.

Copper extended its decline, with Chinese prices touching an eight-month low.

Benchmark three-month copper CMCU3 on the London Metal Exchange extended losses after China's tariff retaliation, but later pared losses and was down 0.2% at $8,643 per metric ton at 1358 GMT.

LME copper has tumbled 20% since touching its highest in more than nine months on March 26 at $10,164.50.

In European gas markets, the benchmark Dutch front-month contract TRNLTTFMc1 was down almost 5% at 33.87 euros per megawatt hour or $10.96 per million British thermal units, LSEG data showed.

However, some markets bucked the trend. Gold prices XAU= climbed around 3% as traders sought a safe haven from the market turmoil. Silver XAG= rose around 1.7%.

Chicago soybeans climbed for a third session, rebounding from four-month lows hit earlier in the week, aided by rising prices in Brazil and a softer dollar.