Oil Prices Crash To Lowest Levels Since 2021: Will They Fall Further?

April 5, 2025, saw oil prices at their lowest since 2021, and they hit the markets hard. Reuters reports that prices plummeted after OPEC+, a collective of oil-producing nations, voted to raise output by 411,000 barrels per day in May. 

This decision, reported on April 3, is made as the world's demand for oil softens, forcing oil into a surplus. The consequence? Prices are dropping quickly, providing a relief to consumers but putting energy companies under strain.

Why the Slide Occurred

According to Reuters, the downturn had been deteriorating this week after U.S. President Donald Trump imposed new tariffs on trading nations. China also declared a 34% counter-tariff on U.S. imports because of President Donald Trump's new tariff increases recently.  

Those tariffs made public on April 2, fueled concerns for slower economic development, reducing demand for oil even further.

At the same time, OPEC+ surprised markets by speeding up plans to boost production, adding more oil to an already flooded market. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to increase oil production by 411,000 barrels per day starting in May.

The combination has sent prices tumbling to levels not seen in over three years.

Energy Stocks Take a Hit

Oil majors are getting pinched. ExxonMobil and Chevron, two American behemoths, have stock prices falling as earnings contract. Over the Atlantic, BP and Shell are not faring much better, with investors concerned about how long the downtrend will continue. The added OPEC+ oil and Trump tariffs are a recipe for disaster for the sector.

What It Means for You

For ordinary folk, cheaper oil might translate to lower gas and heating costs—music to wallets. X posts relay this sentiment, as users highlight relief for families struck by soaring costs. However, for oil workers and investors, it's a nervous time as firms prepare for leaner times.

Looking Ahead

Experts caution prices could remain low if demand fails to recover. For the moment, the world waits as oil markets adapt to this sudden change.