By Ryan Dezember

Energy prices are getting slammed by fears of a global economic slowdown stemming from President Trump's tariff plan, and OPEC and its market allies are piling pressure onto the U.S. energy industry by turn up the spigots.

-- U.S. oil futures fell more than 7% in early trading, on track for their worst day since 2022, when a spike after Russia's invasion of Ukraine was unwinding.

-- Gasoline and diesel futures in New York also plunged.

-- Futures started selling off while Trump was still talking about his tariff plan Wednesday afternoon.

-- Then, this morning the Organization of the Petroleum Exporting Countries and its allies agreed to make a larger-than-expected oil output hike in May, adding to the declines.

-- After a meeting held online on Thursday, eight OPEC+ countries cited "healthy market fundamentals" and a "positive market outlook" in deciding to boost output faster than earlier planned.

-- Crude markets had been buoyed by expectations of sanctions on Iran and others reducing supply to China and India, but tariffs changed that, said Ritterbusch and Associates.

-- "Reduced global economic growth will be the main focus of attention in the coming weeks as more banks and institutions adjust their U.S. growth outlooks lower," the energy trading firm said.

-- U.S. energy stocks tumbled. Refiners Valero and Marathon Petroleum, oilfield services firm Halliburton and producers Diamondback Energy and Devon Energy are among those trading down by 10% or more.

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(END) Dow Jones Newswires

April 03, 2025 10:54 ET (14:54 GMT)

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