WASHINGTON (dpa-AFX) - After reaching its highest level in over a month in the previous session, the price of crude oil pulled back sharply during trading on Thursday.
Crude for May delivery plummeted $4.76 or 6.6 percent to $66.95 a barrel after climbing $0.51 or 0.7 percent to a five-week closing high of $71.71 a barrel in Wednesday's session.
The plunge by the price of crude oil reflected concerns about the outlook for global demand after President Donald Trump delivered a highly anticipated speech on Wednesday outlining his plan to impose sweeping tariffs on U.S. trade partners.
Trump's 'reciprocal tariff' plan calls for a baseline 10 percent tariff to be imposed on all U.S. imports except those compliant with the United States-Mexico-Canada Agreement.
Certain countries deemed the 'worst offenders' will face much higher tariffs, with countries like Cambodia, Laos, Madagascar and Vietnam set to be charged nearly 50 percent.
China, which will face a 54 percent tariff rate when the new levies are combined with existing duties, has vowed to take countermeasures.
Canada and the European Union are also preparing countermeasures, leading to concerns about a trade war that could fuel inflation and damage the global economy.
Adding to the selling pressure, eight OPEC+ countries agreed to speed up previously announced increases in crude oil output.
A statement from OPEC said Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman agreed to increase production by 411,000 barrels per day in May.
OPEC noted the increase in production comprises the increment originally planned for May in addition to two monthly increments.
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