US oil futures plummeted 7%

Oil plunges 7% on trade war fears

From CNN's Matt Egan

Oil prices plunged on Thursday on worries that President Donald Trump’s trade war will slow the world economy and that OPEC is oversupplying the market.

US oil futures plummeted 7% to $66.52 a barrel, leaving crude on track for its worst day since July 2022. Brent crude, the world benchmark, tumbled 6%.

OPEC+ surprised investors on Thursday by announcing Saudi Arabia, Russia and six other members have agreed to sharply accelerate previously scheduled production increases starting in May.

The unexpected move by OPEC+ amplified concerns about the economic fallout of Trump’s massive tariff escalation.

“It’s a demand destruction event and it’s going to disrupt the supply chain. The market is concerned about the threat of recession, inflation and unemployment,” Robert Yawger, executive director at Mizuho Securities, told CNN on Thursday.

If the intensifying trade war slows the flow of goods and services, it will hurt demand for energy like crude oil.

“The good news is prices at the pump will go down. But if we’re going into recession, you won’t be going to the pump as much,” Yawger said.