Oil Prices Slide Further Amid OPEC+ Output Hike and Trump Tariffs

Oil prices continued their downward trend in Asian trading on Friday after plunging over 6% the previous day, as OPEC+ announced accelerated production increases and U.S. President Donald Trump introduced sweeping tariffs that rattled global markets.

As of 21:33 ET (01:33 GMT), Brent crude futures for June dropped 0.4% to $69.84 per barrel, while WTI crude fell 0.5% to $66.17. Both benchmarks had already slumped over 6% on Thursday, marking their steepest drop in three years.

The sell-off followed OPEC+’s decision to boost output by 411,000 barrels per day, faster than previously planned. The move, driven by pressure from major consumer countries including the U.S., raised fears of a potential supply glut, especially amid lingering economic uncertainties. Market sentiment has weakened as investors question whether demand can keep pace with rising supply, given high interest rates, global growth concerns, and China’s uneven recovery.

Adding to bearish sentiment, Trump’s new tariffs—a universal 10% on all imports and a 54% levy on Chinese goods—sparked recession fears. The trade restrictions threaten to dampen industrial activity and consumer spending, potentially reducing global oil demand. China, a key player in global energy consumption, could cut its crude imports in response, amplifying demand worries.

The escalating trade tensions and risk of retaliatory measures may further disrupt global supply chains and economic stability, compounding pressure on oil prices. Investors are now closely watching Friday’s U.S. payrolls report and a speech by Fed Chair Jerome Powell for signs of economic resilience and future monetary policy direction.

Oil markets remain volatile as traders weigh supply-demand dynamics against geopolitical and economic headwinds, with downside risks dominating the outlook.