Oil futures plummeted over 6.5% on Thursday due to Trump's tariffs causing turmoil in financial markets, and new global supply developments indicating ongoing pressure on the global oil market balance.

The price of West Texas Intermediate (CL=F) crude oil, the US benchmark, settled at $66.95 per barrel, while Brent (BZ=F), the international benchmark, was trading close to $70 a barrel.

Dennis Kissler, senior vice president for trading at BOK Financial Securities, expressed that the current panic selling might be an exaggerated reaction to market uncertainties, leading many funds to unwind their positions.

Energy-related equities, including the Dow (^DJI), S&P 500 (^GSPC), and Nasdaq (^IXIC), declined as part of a broader market sell-off.

Following Trump's tariff announcement, the Organization of Petroleum Exporting Countries and its allies agreed to increase oil supply more than anticipated beginning in May.

KPMG US energy leader Angie Gilde highlighted that the combination of boosted oil production and a weakened global economic outlook is pushing oil prices down, potentially signaling a new phase in a volatile market.

The decision to increase oil supply by 411,000 barrels per day further deepened losses that started after the tariff announcement by the Trump administration.

Although energy was spared from the tariffs, concerns arose about the impact of Trump's global trade war on demand if global economic growth decelerates due to revised trade arrangements.

Rebecca Babin, senior energy trader at CIBC Private Wealth, pointed out that the significant 54% tariff on Chinese imports is particularly negative and that emerging economies, which are key contributors to crude demand growth, are most affected.

Prior to these events, oil prices had been rising on the back of previous actions by the Trump administration, including pressure on Iran, threats of tariffs on countries importing from Russia, and additional tariffs on Venezuelan energy, all hinting at a tighter global supply situation.