Oil prices drop following OPEC+ increase of output, Trump tariffs
Oil prices fell on Thursday after the Organisation of Petroleum Exporting Countries (OPEC+ group) announced an increase in oil output. This followed a decrease in the price of oil following US President Donald Trump’s announcement of sweeping new import tariffs. According to a report by Reuters, Brent futures were down $5.04, or 6.72%, at $69.91 […]
OPEC+
Oil prices fell on Thursday after the Organisation of Petroleum Exporting Countries (OPEC+ group) announced an increase in oil output.
This followed a decrease in the price of oil following US President Donald Trump’s announcement of sweeping new import tariffs.
According to a report by Reuters, Brent futures were down $5.04, or 6.72%, at $69.91 a barrel while West Texas Intermediate crude futures were down $5.13, or 7.15%, at $66.58.
It stated that Brent was on course for its worst percentage drop since August 1, 2022, and WTI its worst since July 11, 2022.
At a ministers’ meeting on Thursday, OPEC+ countries agreed to advance their plan for oil output increment aiming to dump additional 411,000 barrels per day to the market in May, up from 135,000 bpd initially planned.
“Oil prices were already trading some 4% lower prior to the meeting, as investors reacted to Trump’s tariffs with concerns that they would escalate a global trade war, curtailing economic growth and limiting fuel demand.”
“Trump on Wednesday unveiled a 10% minimum tariff on most goods imported to the U.S. with Nigeria getting a 14 percent hike, the world’s biggest oil consumer, with much higher duties on products from dozens of countries. Imports of oil, gas and refined products were exempted from the new tariffs, the White House said on Wednesday.”
UBS analysts on Wednesday cut their oil forecasts by $3 per barrel over 2025-2026 to $72 per barrel.
It stated that traders and analysts now expect more price volatility in the near term, given that the tariffs may change as countries try to negotiate lower rates or impose retaliatory levies.