08:44 AM EDT, 04/03/2025 (MT Newswires) -- Oil prices plunged early on Thursday amid broad market chaos following the imposition of widespread tariffs by the Trump Administration on U.S. trading partners and a decision by OPEC+ to add in May more new supply than expected as it speeds the return of 2.2-million barrels of production cuts to market.

West Texas Intermediate crude oil for May delivery was last seen down US$4.48 to US$67.23 per barrel, while June Brent crude was down US$4.38 to US$70.57.

The drop comes after President Donald Trump on Wednesday imposed broad-based tariffs on most U.S. trading partners, launching a global trade war. Canada, mostly spared from blanket levies but is still exposed to tariffs on steel, aluminum and autos, China and Europe, which saw fresh taxes imposed on their imports, are pondering their response to the measures.

The U.S. moves are expected to raise inflation and stunt global growth. Stock markets in Europe and Asia were sharply lower and futures point to a sizeable drop in U.S. stocks when markets open there.

"US President Trump has imposed the steepest and harshest American tariffs in a century on all its major counterparts, sparking threats of retaliation and a broad selloff around the world on concerns that a global trade war on this scale and magnitude will drive an economic slowdown," Ole Hansen, head of commodity strategy at Saxo Bank, noted.

Adding to the selling pressure on oil, OPEC+ said it is speeding the return of voluntary production cuts, saying it will add 411,000 barrels per day of supply to the market in May, three times higher than its original plan to return the cuts in 18 monthly increments of 138,000 barrels per day.

"In view of the continuing healthy market fundamentals and the positive market outlook, and in accordance with the decision agreed upon on 5 December 2024 ... the eight participating countries will implement a production adjustment of 411 thousand barrels per day, equivalent to three monthly increments, in May 2025," OPEC said in a statement posted on its website.