Oil prices just saw their sharpest drop since 2022, falling nearly 5% in a day. The reason? A double shock to the market. First, Trump’s new global tariffs reignited fears of a trade war and slower growth — which means weaker demand for oil. Then OPEC+ surprised markets with a major production hike, adding more supply just as demand forecasts are falling. The result: prices plunged, and volatility is rising. Watch the full video for the key drivers — and what might happen next.
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00:00Oil prices just suffered their sharpest drop since 2022,
00:03falling nearly 5% on Thursday.
00:06Here's what's behind the slide.
00:08First, Trump's new global tariffs rattled markets.
00:12Investors fear they could spark a trade war, dragging down global growth.
00:16That matters for oil because weaker economies use less fuel.
00:20Fewer shipments, less industrial activity, lower demand.
00:24Then came a surprise move from OPEC+,
00:27the alliance of top oil-producing countries like Saudi Arabia and Russia,
00:31which actively manages supply to influence global prices.
00:35Instead of holding back, they announced a surprise production hike,
00:38over 400,000 extra barrels a day starting in May.
00:42That's triple the original forecast.
00:44So at the very moment demand forecasts are weakening, supply is ramping up.
00:49That's a classic recipe for falling prices.
00:52And markets reacted fast.
00:54Brent and WTI futures tumbled past $65 a barrel.
00:58Some analysts see prices falling even further.
01:01OPEC+, says it expects demand to rebound later this year.
01:06But others point to pressure from Trump,
01:08who's long pushed for lower oil prices to soften the inflation hit from his own tariffs.