FX.co ★ Oil Plunges by Over 6% after OPEC Output Hike Announcement

Oil prices plummeted by over 6% on Thursday, with West Texas Intermediate (WTI) crude dropping to $67 per barrel. This substantial decrease gained momentum when eight OPEC+ member nations unexpectedly declared a significant increase in oil output, planning to boost production by 411,000 barrels per day in May—substantially exceeding the originally anticipated rise of 135,000 barrels per day. OPEC rationalized this decision by pointing to robust market fundamentals, although the organization also indicated its readiness to halt future increases if necessary. Prior to this announcement, oil had already seen a decline of more than 4% following U.S. President Trump's introduction of new tariffs. This development has fueled concerns of a looming global trade conflict, which could potentially impede economic growth and dampen fuel consumption. Although oil imports remained unaffected by the tariffs, investors fretted over potential adverse impacts on the economy and inflation. Adding to the downward pressure, U.S. crude inventories experienced an unexpected rise of 6.2 million barrels the previous week, contrary to predictions of a 2-million-barrel decrease, primarily due to a surge in Canadian imports.