Oil prices are collapsing after tariffs and OPEC deliver double blows to energy markets

• U.S. oil prices fell more than 7.5% on Thursday.

• With the fear of the recession, Trump’s tariffs are beating the energy market.

• OPEC+’s surprise decision to boost oil production accelerated the decline.

The market crash has exceeded stocks as the latest batch of U.S. tariffs pummels crude oil prices are as low as seven months. The surprise decision of the Organization of Petroleum Exporting Countries further weakened oil traders.

U.S. crude fell to 7.63% at around noon Thursday, at $66.25 a barrel. International benchmark Brent Intrude fell 6.96%.

Investor response to the double blow began with a major escalation of President Donald Trump’s trade war. On Wednesday, the White House announced a series of expected high tariffs on the world economy list, expanding fears of growth.

Now, the odds for the recession are as high as 53% in betting markets such as Kalshi, and the price-cut bets jump as traders see the Fed cut borrowing costs to weaken the effects of the recession.

David Morrison, senior market analyst at the trade country, said the anxiety has an indirect effect on petroleum products.

“Energy imports are largely unaffected tariffs. But investors respond to the estimated damage these tariffs could cause to global trade, thus causing damage to global economic growth.”

Worse, OPEC+ announced that eight of its members will increase crude oil production by 411,000 barrels per day next month. Although the cartel is expected to end some of its production cuts, the increase is three times higher than previously indicated.

The group spent years blocking production to raise energy prices in support of member economies. OPEC representatives told Bloomberg that the increase in output was to punish other members who have not yet complied with the agreed quota. In the past, this included Kasakhstan and Iran.

The action may be in Trump’s interest as the president calls on OPEC to lower crude oil prices. However, it could reignite concerns about oversupply in the global market, especially if the recession suppresses energy demand.

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