Oil prices crashed yesterday to reach their steepest percentage loss since 2022.
This occured after the Organisation of Petroleum Exporting Countries and it’s allies, (OPEC+) agreed to a surprise increase in output the day after the United States President, Donald Trump, announced sweeping new import tariffs.
According to Reuters, Brent futures fell to $70.14 a barrel, a decrease of $4.81, or 6.42 per cent.U.S. West Texas Intermediate crude futures slumped to $66.95 a barrel, which is fall of $4.76, or 6.64 per cent.
Recall that Brent was on course for its biggest percentage drop since August 1, 2022, and WTI its biggest since July 11, 2022.
At the ministers’ meeting yesterday, OPEC+ countries agreed to advance their plan for oil output hikes, now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd initially planned. Angie Gildea, KPMG U.S. energy leader said:
“The economy and oil demand are inextricably linked.
“Markets are still digesting tariffs, but the combination of increased oil production and a weaker global economic outlook puts downward pressure on oil prices – potentially marking a new chapter in a volatile market.”
Meanwhile,the eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on April 3, 2025, to review global market conditions and outlook.
