Oil prices plunge after Trump tariff shock, OPEC + to raise output

The Organization of Petroleum Exporting Countries and its allies (OPEC+) has announced plans to increase oil production by 411,000 barrels per day (bpd) starting May 2025, marking a significant policy shift aimed at gradually phasing out previous output cuts.In a statement released on Thursday following a virtual meeting of its members, the oil cartel said the decision was taken by eight key OPEC+ countries: Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.These countries had previously implemented steep voluntary cuts to stabilize the global oil market amid economic uncertainty and fluctuating demand.

The move immediately rippled through the global oil markets, causing a sharp decline in prices. As of 10 p.m.



West Africa Time (WAT), Brent crude had fallen by 6.8 percent to $69.85 per barrel, while U.

S. West Texas Intermediate (WTI) dropped by 7.08 percent, settling at $66.

63.Analysts tied the sudden slump in oil prices not only to the OPEC+ production hike but also to a major economic announcement by U.S.

President Donald Trump, who earlier this week revealed a 10 percent tariff on all imported goods, a move that has drawn international criticism and raised fears of a potential trade slowdown.READ ALSO: Petrol prices set for potential decline amid falling crude oil costs, stable NairaThe output increase is part of a long-term plan to unwind earlier supply cuts. In April 2023, the eight OPEC+ nations implemented a voluntary reduction of 1.

65 million bpd, which was further deepened by an additional 2.2 million bpd cut in November 2023.These adjustments were initially extended through March 2025, with a gradual phase-out expected by September 2026 to maintain market stability.

The 411,000 bpd increase in May includes three monthly increments — the originally scheduled addition for May and two additional early increments. OPEC emphasized that the pace of the output rise remains flexible and could be paused or reversed, depending on evolving market conditions.“This flexibility will allow the group to continue to support oil market stability,” OPEC said in the statement.

To ensure alignment with market dynamics, the eight participating countries will hold monthly meetings to assess conditions, compliance, and compensation efforts for previous overproduction or underproduction.The next OPEC+ meeting is scheduled for May 5, where June output levels will be reviewed.Industry experts believe the phased easing of cuts signals confidence in the global economic recovery but warn that geopolitical shocks — such as Trump’s new tariffs — could introduce volatility in the coming months.

Despite the price dip, OPEC+ maintains that the production increase aligns with its broader strategy of supporting long-term market balance, even as global oil demand and macroeconomic policies remain unpredictable.The post Oil prices plunge after Trump tariff shock, OPEC + to raise output appeared first on National Daily Newspaper..