Oil Prices Plummet Over 10% Amid Tariffs, OPEC Output Changes

Oil prices have experienced a significant decline, with both Brent and West Texas Intermediate (WTI) crude seeing steep drops due to a combination of new tariffs imposed by President Trump and increased production from OPEC. The tariffs, primarily targeting Chinese imports, have intensified fears of a global trade war and potential economic slowdown, causing investors to seek safer assets such as bonds and gold. OPEC's decision to increase oil output by 411,000 barrels per day, more than initially planned, has further pressured prices, reflecting a shift from previously constrained production levels. The market reaction includes a notable 7% single-day drop in U.S. oil futures, marking one of the worst days since the early pandemic oil crash. These developments have led Goldman Sachs to lower its oil price forecasts amid recession concerns and heightened supply risks. The situation underlines the vulnerability of energy markets to geopolitical and economic factors.