US oil prices have plummeted to a seven-month low after a surprise decision by OPEC+ to boost crude output, exacerbating concerns about a potential recession. The drop, which saw US crude fall 7.63% around midday on Thursday, has been fueled by President Donald Trump’s tariffs and fears of a global economic slowdown.
The White House announced new, higher-than-expected tariffs on world economies on Wednesday, sparking anxiety among investors who see the damage these could do to global trade and economic growth. This sentiment has trickled into energy markets, where oil prices have tumbled.
OPEC+ announced that eight of its members will increase production by 411,000 barrels a day next month, three times the amount previously indicated. While this may be beneficial for President Trump’s efforts to reduce crude pricing, it could also reignite concerns about a supply glut in the global market, particularly if a recession affects energy demand.
Market analysts say that while energy imports are largely unaffected by tariffs, investors’ reaction to the estimated damage these tariffs could do to global trade has had an indirect impact on oil prices. The chance of a recession now stands at as high as 53% on betting markets, and rate-cut bets have jumped in response to this anxiety.
Source: https://finance.yahoo.com/news/oil-prices-crashing-tariffs-opec-004901673.html