As global markets reeled from President Trump’s sweeping new tariffs announced just a day earlier, eight key OPEC+ producers shocked traders on Thursday by accelerating their crude oil output hikes — triggering a sharp selloff in global oil benchmarks.
Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman agreed during a virtual meeting to raise their collective oil output by 411,000 barrels per day starting in May, far more than the expected 138,000 barrels.
As of early Thursday afternoon in London, Brent crude for June delivery dropped 5.94% to $70.50 a barrel, while the front-month WTI contract plunged 6.41% to $67.11, one of the steepest one-day losses in months.
In its statement, OPEC said the increase amounts to “three months' worth of planned monthly hikes,” while also noting that future changes could be “paused or reversed depending on market conditions.” The decision is part of the gradual unwinding of 2.2 million barrels per day of voluntary cuts initiated by these eight countries independently from the broader OPEC+ strategy, which includes 3.66 million bpd in total cuts set to last until end-2026.
Thursday’s meeting also marked the first appearance of Kazakhstan’s new energy minister Erlan Akkenzhenov, a notable figure given the country’s repeated overproduction beyond its OPEC quota. OPEC mentioned that this move gives producers a chance to “accelerate compensation,” meaning they could reduce future output to make up for prior overproduction.
The move comes amid broader economic turmoil spurred by Trump’s aggressive new tariff regime, which aims to implement reciprocal tariffs on over 180 countries. Market fears of slowing demand — combined with an unexpected supply surge — have dealt a double blow to oil prices.
Analysts warn that the market could remain highly volatile in the coming weeks, as geopolitical risk mixes with supply uncertainty. Investors will closely watch whether other OPEC+ members follow suit, and whether the U.S. government takes further steps to influence oil prices, including tapping strategic petroleum reserves again.
