Oil deepens losses to 7%; Brent falls below $70

Oil prices deepened their losses today, April 3, after OPEC+ surprised the markets by agreeing to boost supplies in May with an increase equivalent to three monthly increments from its previous output hike plan. This was compounded by fears of a global recession due to US President Donald Trump's reciprocal tariffs.

Brent crude for June delivery fell 6.70%, or $5.01, to trade at $69.94 per barrel at 5:30 pm Makkah time, after touching $69.78 (-6.9%).

West Texas Intermediate (WTI) crude also plunged by 7.25%, or $5.21, to $66.50 apiece, after touching $66.38 (-7.4%).

Eight OPEC+ members, led by Saudi Arabia and Russia, agreed to increase production by 411,000 barrels per day starting in May.

In a statement today, the alliance said that these gradual increases may be paused or reversed, depending on market conditions. “This flexibility will allow the group to continue to support oil market stability,” it noted.

Meanwhile, prices were also under pressure as a result of the risk of a global trade war after Trump announced reciprocal tariffs on all countries at a minimum of 10%, while targeting several countries with much higher tariffs.

UBS analysts lowered their average Brent crude price forecast for 2025 and 2026 by $3 per barrel to $72, and by $2 per barrel for 2027 to $73.