Summarize and humanize this content to 2000 words in 6 paragraphs in English The price of oil cratered on Friday, tumbling to its lowest level since 2021, as a perfect storm of rising supply and fears of collapsing demand shook global energy markets. The United States Oil Fund (USO), the largest oil-tracking ETF, dropped 7.1% in midday trading. WTI crude oil traded as low as $60.45 per barrel for the first time in four years, when the pandemic was still weighing heavily on the global economy. Friday’s selloff came as recession worries intensified amid a dramatic escalation in President Donald Trump’s ongoing trade war. In a retaliatory move, China announced sweeping 34% tariffs on all imports from the U.S.—a dramatic broadening of the trade conflict that’s already rattled financial markets. Investors fear that the aggressive tit-for-tat tariff measures could significantly slow global growth, with energy demand among the most vulnerable casualties. Oil, often viewed as a bellwether for economic activity, is now pricing in a much gloomier outlook. Adding fuel to the fire was a surprise decision by OPEC+. On Thursday, the oil cartel and its allies agreed to raise output by 411,000 barrels per day starting in May, far surpassing analyst expectations for a 140,000-barrel-per-day increase. The move is part of a broader unwind of the 2.2 million barrels per day in production cuts the group initiated in previous years to stabilize prices. The combination of surging supply and the prospect of sinking demand was too much for markets to ignore. USO’s 7.1% drop on Thursday reflects this rapid sentiment shift. Other energy-related ETFs also felt the pressure, with the Energy Select Sector SPDR Fund (XLE) sliding 8.2% on Friday. Still, energy is one of the better-performing sectors this year. XLE is down 7.8% since the start of the year, about half of the 13.4% loss for the broad SPDR S&P 500 ETF Trust (SPY). Permalink | © Copyright 2025 etf.com. All rights reserved
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