HOUSTON, May 8 (Reuters) - Oil and gas drilling permit

applications in Texas, the top U.S. oil-producing state, fell to

their lowest last month since February 2021, consultancy Enverus

said, amid concerns that rising OPEC+ supplies and a trade war

will continue to hit crude prices.

Operators in Texas submitted 570 new drilling permit

applications in April, down from 795 in March and the lowest

number since February 2021, according to Enverus.

"After Liberation Day we saw a response where there was

a sharp decline on average, of weekly permits submitted as a

result of the uncertainty of the global trade war, and you have

the entire supply side from OPEC+ too," said Mark Chapman, who

leads oilfield services intelligence coverage at Enverus.

Oil prices have fallen to four-year lows since U.S.

President Donald Trump unveiled an extensive list of trade

tariffs on what he called Liberation Day, on April 2 against

most countries last month, raising alarm bells about the

potential for a recession, which in turn could crush oil demand.

Meanwhile, the Organization of the Petroleum Exporting

Countries and allies (OPEC+) agreed to accelerate oil production

hikes for a second consecutive month, raising output in June by

411,000 barrels per day (bpd).

In the Permian basin in New Mexico and Texas, the

nation's biggest shale oil-producing basin,

drillers cut

two rigs last week, bringing the total down to 287, the

lowest since December 2021, according to service firm Baker

Hughes ( BKR ).

The Permian accounts for around half of total U.S. crude

production, producing 6.39 million bpd in April, according to

the Energy Information Administration.

Shale producer Diamondback said on Monday it will

drop three rigs in the second quarter, and could reduce activity

further if oil prices fall more. Rival Coterra Energy ( CTRA )

is reducing its 2025 Permian activity by three rigs, while

producer Matador Resources ( MTDR ) is dropping one drilling rig

by the middle of 2025.