WASHINGTON (dpa-AFX) - Oil prices were down around 4 percent on Friday, and were on track for their worst week in months on concerns about a global recession that could weigh on oil demand.
Benchmark Brent crude futures tumbled 3.6 percent to $67.63 in early European trade while WTI crude futures were down 3.8 percent at $4.38.
Both contracts declined more than 6 percent on Thursday after U.S. President Donald Trump announced significantly harsher-than-expected tariffs.
According to UBS, the latest tariff measures unveiled by Trump may knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5 percent.
JPMorgan has raised the probability of a global recession this year to 60 percent, from a previous 40 percent.
Adding to investor anxiety, OPEC+ unexpectedly increased the supply by three times the planned amount in May.
A statement from OPEC said Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman have agreed to increase production by 411,000 barrels per day in May.
The oil cartel noted the increase in production comprises the increment originally planned for May in addition to two monthly increments.
Goldman Sachs has significantly lowered its oil price forecasts for 2025 and 2026, citing OPEC+'s increased production and the potential for a global recession.
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