Crude oil prices experienced a significant drop due to concerns over potential demand reduction stemming from newly imposed US tariffs, which sparked fears of a global trade war. Simultaneously, OPEC+ announced an unexpected increase in oil supply, further pressuring prices downwards. This confluence of events pushed oil prices below profitable levels for some US producers, creating a state of crisis in the market. Economic anxieties were heightened by warnings from the European Central Bank regarding trade disruptions and signs of slowing demand, such as a decrease in Tesla's EV sales in China. Despite some analysts suggesting a potential quick rebound if tariffs are merely a negotiating tactic, the immediate outlook for oil prices remains uncertain amidst geopolitical tensions and fluctuating inventory levels.