08:40 AM EDT, 05/01/2025 (MT Newswires) -- Oil fell to a fresh four-year low early on Thursday, weighed down by a slowing U.S. economy and reports Saudi Arabia is ready to punish OPEC+ over-producers with fresh supply to lower prices.

West Texas Intermediate crude oil for June delivery was last seen down US$1.14 to US$57.07 per barrel, the lowest since February, 2021, while July Brent crude dropped US$1.06 to US$60.00.

The fourth-straight drop in prices comes as the United States on Wednesday reported an unexpected fall in its first-quarter gross domestic product, while hiring is slowed even ahead of the April 2 imposition of blanket tariffs against nearly all U.S. trading partners by President Donald Trump.

The prospect of slowing demand amid the fracturing of global trading patterns comes as OPEC+ adds 411,000 barrels per day of supply as it unwinds 2.2-million bpd of production cuts,. Reports say the group is readying another outsized production boost to output in June. Reuters on Wednesday reported Saudi Arabia is prepared to weather a prolonged period of low prices as its seeks to punish Kazakhstan and other OPEC+ members producing above their quota by boosting output.

"The very real possibility that OPEC+ will continue to bring extra barrels to the market as it fights to keep order within its ranks is added to the diplomatic thrusts in Ukraine and Iran which if successful means more international crude on the water at a time when a trade war will squash any hope of demand growth," PVM Oil Associates wrote.