Oil markets faced a punishing selloff Thursday as crude tumbled the most since 2020, hit by the double shock of President Donald Trump's sweeping tariff announcement and OPEC+'s unexpected decision to accelerate production increases. West Texas Intermediate (OIL.WTI) futures plunged as much as 7.4% to trade below $67 a barrel, while global benchmark Brent (OIL) plummeted over 7% to slip below $70.
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Tariffs Spark Growth Concerns
Trump's "Liberation Day" tariffs created fresh doubts about global economic growth, particularly with aggressive levies against major crude importers like China and India. Although the administration exempted oil flows from Canada and Mexico, fears that the trade war will sap energy demand sent prices tumbling.
OPEC+ Surprises Markets with Supply Boost
In a significant policy shift, OPEC+ revealed plans to add more than 400,000 barrels of daily output next month, triple the amount previously planned. Sources indicate the move aims to pressure members who have exceeded production quotas while potentially replacing barrels lost from tighter US sanctions on Iran and Venezuela.
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OIL.WTI (D1 Interval)
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Futures prices for OIL.WTI are falling to around $66.5, erasing all the gains recorded in March during a single session. In doing so, they have tested the first of two key support levels today: around $66, marked by the consolidation zone from the first half of March. A drop below this level could open the way for bears to test $65.3, which would mean a yearly low.
Source: xStation
