Brent oil slumps nearly 7% on Trump tariffs, output boost by OPEC+

Oil prices fell on Thursday as the decision by the OPEC+ group to speed up unwinding of oil output cuts in May compounded already heavy losses following U.S. President Donald Trump's announcement of sweeping new import tariffs.

Brent futures were down $5.04, or 6.72%, at $69.91 a barrel by 12:50 p.m. EDT (1650 GMT). U.S. West Texas Intermediate crude futures were down $5.13, or 7.15%, at $66.58.

"Obviously, there's a lot of fear and moaning this morning," said Phil Flynn, senior analyst with Price Futures Group. "A lot of people didn't think Trump would go through with it and he did."

At a ministers' meeting on Thursday, OPEC+ countries agreed to advance their plan for oil output hikes, now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd initially planned. OPEC+ refers to the Organization of the Petroleum Exporting Countries and allies like Russia.

"The economy and oil demand are inextricably linked," said Angie Gildea, KPMG's U.S. energy leader.

"Markets are still digesting tariffs, but the combination of increased oil production and a weaker global economic outlook puts downward pressure on oil prices - potentially marking a new chapter in a volatile market."