Oil Prices Tumble on Trump Tariffs and OPEC+ Production Hike

Oil prices deepened their slide Friday, with WTI trading at $61.80—down $5.15 (-7.69%) on the day—and Brent at $65.35, off $4.79 (-6.83%), as fresh data from Baker Hughes revealed a drop in U.S. drilling activity. 

The total active rig count fell by 2 to 590, down 30 from a year ago, with oil rigs rising 5 to 489 (still 19 below last year) and gas rigs dropping 7 to 96 (14 fewer than 2024). 

In the Permian Basin, the nation’s top oil patch, rigs slid by 3 to 294—23 less than last year—reflecting WTI’s plunge below the Dallas Fed’s breakeven threshold for regional producers. 

The Eagle Ford held steady at 48 rigs, down 8 year-over-year.

Meanwhile, U.S. crude output edged up to 13.580 million bpd, per EIA data, just 51,000 bpd shy of December’s record. Primary Vision’s Frac Spread Count also fell to 209 crews from 215 last week. 

The rig dip aligns with Trump’s “Liberation Day” tariffs and OPEC+’s plan to accelerate production hikes in May, piling pressure on prices already reeling from recession fears flagged by Fed Chair Powell earlier today. Markets remain volatile, with oil briefly dipping below $62 before stabilizing slightly.