Oil prices dive 7% on US tariffs, OPEC+ supply boost

The news: Global oil prices recorded their steepest percentage loss since 2022, after OPEC+ agreed to a surprise increase in output a day after US President Donald Trump announced sweeping new import tariffs.

The numbers: Brent crude futures were down 6.72% to USD69.91/bbl, their biggest percentage drop since August 2022. US West Texas Intermediate crude futures fell 7.03% to USD66.67/bbl, their biggest percentage drop since July 2022.

The context: The slide comes after the Organization of the Petroleum Exporting Countries plus allies led by Russia, agreed to bring forward their plan to hike oil output, with a larger than anticipated increase. OPEC+ countries now aim to return 411,000 barrels per day to the market in May, up from 135,000 bpd initially planned.

Oil prices were already trading sharply lower prior to the meeting, with investors worried Trump's tariffs would escalate a global trade war, curtail economic growth and limit fuel demand. Trump unveiled a 10% minimum tariff on most goods imported to the US, the world's biggest oil consumer, although imports of oil, gas and refined products were exempted from the new tariffs. Further weighing on market sentiment, data showed US crude inventories rose by a surprisingly large 6.2 million barrels last week, against analysts' forecasts for a decline of 2.1 million barrels.