Overview

• Global oil prices have dropped below $60 per barrel for the first time since 2021, with Brent Crude falling by over 5% to $58.46 before stabilizing slightly above $60.
• The decline follows President Trump's sweeping tariffs announced on April 2, which have intensified trade tensions and weighed on global demand forecasts.
• OPEC+ unexpectedly announced a production increase of 411,000 barrels per day starting in May, exceeding market expectations and adding pressure on prices.
• Analysts warn that sustained low prices could hinder new drilling projects, with U.S. producers needing prices above $65 per barrel to maintain profitability.
• Forecasts from major financial institutions, including Goldman Sachs and Morgan Stanley, predict further price declines through 2025, raising concerns about broader economic impacts on the energy sector.