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Oil prices suffered their steepest single-day decline since 2022 on Thursday, as mounting concerns over a surge in global supply coincided with growing unease over escalating trade frictions.

Brent crude dropped $4.81, or 6.42%, to settle at $70.14 a barrel. 

West Texas Intermediate (WTI) fell $4.76, or 6.64%, to $66.95 a barrel.

These drops occurred at a pace unwitnessed since 1 August 2022, and 11 July 2022, respectively.

The sell-off was triggered by an unexpected decision from eight OPEC+ members to significantly increase their output hike—from 135,000 to 411,000 barrels per day—starting in May. The announcement raised fresh concerns about rising supply in an already fragile market.

Investor sentiment was further weighed down by the United States’ move to impose a 10% minimum tariff on most imports, alongside a raft of reciprocal tariffs targeting 60 countries. Although energy products were excluded from the latest tariff list, markets remained jittery over the broader economic implications, including potential retaliation, a slowdown in global trade, and weakening energy demand.

Written by: Derek Yong