Oil prices plunged on Thursday, marking their steepest percentage drop since 2022, after OPEC+ unexpectedly increased output a day after President Donald Trump introduced sweeping new import tariffs. Brent crude settled at $70.14 per barrel, down $4.81 or 6.42%, while WTI closed at $66.95, falling $4.76 or 6.64%.
Brent posted its largest decline since August 1, 2022, and WTI since July 11, 2022. OPEC+ announced an accelerated production hike, raising planned additions to 411,000 barrels per day in May from the previously expected 135,000 bpd.
The market had already been trading about 4% lower before the announcement, as concerns grew that Trump’s tariffs could fuel a global trade war, slow economic growth, and weaken oil demand. While imports of oil, gas, and refined products were exempt from the new tariffs, analysts revised their oil price forecasts lower, with UBS cutting its 2025-26 projection by $3 to $72 per barrel.
Additionally, U.S. crude inventories unexpectedly rose by 6.2 million barrels last week, against expectations of a 2.1 million-barrel decline, further pressuring prices.