Opec+ unexpectedly speeds up oil output hikes, oil drops

Eight Opec+ countries unexpectedly agreed to advance their plan to phase out oil output cuts by increasing output by 411,000 barrels per day in May, a decision that prompted oil prices to extend earlier sharp losses.

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Oil, which was already down over 4% on US President Donald Trump's announcement of tariffs on trading partners, extended declines after Opec updated its plans in a statement, with Brent crude dropping over 6% to below $70 a barrel.

Joseph Dahrieh, Managing Principal at Tickmill told Gulf Today that crude oil futures have reversed their gains from early March, with prices falling after US President Trump's tariff announcements, stoking concerns over potential global trade tensions and its impact on oil demand.

"This pullback reflects market uncertainty and could weigh on global crude prices in the near term, particularly if trade tensions hinder economic growth in key oil-consuming regions.

The outlook suggests caution, with volatility likely to increase as markets digest the full implications of the tariffs. Longer-dated futures contracts also saw declines in prices, indicating expectations of long-term risks for crude prices." Dahrieh added.