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Oil Markets Reel as Prices Drop Over 7% Following Tariffs and OPEC+ Production Hike

President Trump's sweeping tariffs and OPEC+'s unexpected supply increase have intensified fears of global economic slowdown and energy market oversupply.

The President says new tariffs will help bring manufacturing jobs back to the U.S. but large trade groups tend to disagree.
A pumpjack operates at the Vermilion Energy site in Trigueres, France, June 14, 2024. REUTERS/Benoit Tessier/File Photo
A 3D printed oil pump jack is seen in front of displayed stock graph and Opec logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • Oil prices plunged over 7% on April 3, with Brent crude trading below $70 per barrel and WTI at approximately $66 per barrel.
  • President Donald Trump announced a 10% baseline tariff on most imports, sparking concerns of a global trade war and potential economic stagnation.
  • OPEC+ surprised markets by announcing a production increase of 411,000 barrels per day starting in May, tripling the originally planned increment.
  • The combination of tariffs and increased oil supply has raised fears of reduced global energy demand and heightened market volatility.
  • Major oil producers, including Chevron and BP, saw significant stock price declines, with some independent energy companies experiencing losses exceeding 10%.