Oil prices hit multiyear low as supply surge and demand fears slam energy stocks
It’s shaping up to be the worst week for oil in over two years.
Oil prices tumbled nearly 8% on Friday, touching their lowest level since 2021, as escalating trade war tensions stoked recession fears and sent investors scrambling.
Brent crude, the global benchmark, touched below $65 a barrel — on track for its weakest finish since August 2021. West Texas Intermediate (WTI), the US equivalent, dropped below $61, its lowest since April 2021.
The Energy Select Sector SPDR Fund, which tracks a basket of oil and gas giants like Exxon, Chevron, and ConocoPhillips, sank nearly 9% Friday as investors reacted to the slump. Adding to the pressure, OPEC and its allies (OPEC+) are boosting production and plan to add even more barrels to the market going forward. The group now aims to bring an additional 411,000 barrels per day to the market in May — nearly triple the original planned boost of 135,000 bpd.
Even though oil imports were spared from President Trump’s latest tariffs, the broader economic fallout is already taking a toll. HSBC trimmed its 2025 global oil demand forecast, citing the trade tensions and OPEC’s decision, while Goldman Sachs slashed its Brent crude price target to $69 a barrel from $73, with WTI now seen averaging $66 a barrel instead of $69.
