Oil prices suffered a significant drop on Thursday, marking the largest percentage decline since 2022. The fall was triggered by the OPEC+ decision to increase oil production, following U.S. President Donald Trump’s announcement of new, stringent import tariffs.
- Brent futures closed at $70.14 per barrel, down by 4.81 dollars (6.42%).
- West Texas Intermediate (WTI) futures ended at $66.95 per barrel, a decrease of 4.76 dollars (6.64%).
The Brent recorded its largest percentage drop since August 1, 2022, while the WTI experienced its steepest decline since July 11, 2022.
Mexican export blend saw a 6.30% decrease, selling at $64.27 per barrel.
During a meeting of ministers on Thursday, OPEC+ countries agreed to accelerate their plan for increasing oil production, now targeting an additional 411,000 barrels per day in May, up from the previously planned 135,000 bpd.
“The oil market and economic demand are intrinsically linked,” said Angie Gildea, KPMG’s U.S. Energy Leader.
“Markets are still processing the tariffs, but the combination of increased oil production and weaker global economic prospects is putting downward pressure on oil prices, potentially marking a new chapter in an already volatile market.”
Oil prices had already dropped around 4% earlier in the day due to concerns over how tariffs could intensify a global trade war, slow economic growth, and curtail energy demand.
Trump revealed on Wednesday a minimum 10% tariff on most goods imported into the U.S., the world’s largest oil consumer, with significantly higher rates for products from numerous countries.
U.S. Energy Information Administration data showed that crude inventories rose by 6.2 million barrels last week, against analyst forecasts of a 2.1 million-barrel decrease.
