The marked decline follows Donald Trump’s announcement of imposing trade barriers with key economic partners.
North Sea crude, the European benchmark, closed the session on the Intercontinental Exchange trading at $4.81 below the previous close of $74.95 on Wednesday.
This pricing level is also influenced by the decision of OPEC+, a coalition comprising members of the Organization of the Petroleum Exporting Countries (OPEC) and allies like the Russian Federation, which decided to increase production starting in May beyond initial expectations.
OPEC+ announced a production adjustment of 411,000 barrels per day in May, as per a statement, moving faster than the initial plan for the gradual reintroduction of barrels withheld by eight cartel members.
This production increase supports the trend of falling prices, as analysts had anticipated a rise similar to April’s increase of 137,000 barrels per day.
According to Ole R. Hvalbye, an analyst from SEB, one must now reckon with a more “politically influenced OPEC+” after Trump pressured the cartel to raise production.
