Oil Prices Drop 6% on OPEC+ Production Increase

Crude oil prices have plummeted following OPEC+'s unexpected announcement to increase oil production by 411,000 barrels per day starting in May, significantly higher than the market's anticipated 135,000 bpd. This decision, aimed at unwinding pandemic-era output cuts, coincides with President Trump's new tariffs, raising fears of a global trade war that could weaken economic growth and reduce oil demand. West Texas Intermediate (WTI) and Brent prices fell to $66.95 and $70.14 per barrel, respectively, marking one of the largest single-session declines in recent years. The tariffs, though sparing energy products, have exacerbated market volatility and investor concerns about a potential recession. The increase in oil supply, alongside rising U.S. crude inventories, has intensified downward pressure on prices, which were already declining. OPEC+ has indicated that future production hikes could be adjusted based on evolving market conditions.