This drop was largely due to lingering concerns over a global supply glut—especially with record output coming from U.S. shale and OPEC+ signaling no immediate cuts—rising trade tensions, and a stronger U.S. dollar.
As we have seen over the past few weeks, the energy sector has been one of the first sectors to take a hit from Trump's tariff announcements. Investors worry about slow global trade and economic momentum, which logically pressures oil demand expectations.
