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First Look - Crude tumbles $5/Bbl on reciprocal tariffs

Crude slides 5% on “Liberation Day” tariffs
- WTI crude $5.01 to $66.70/Bbl on Thursday morning (7:45 AM CT)
- The newly announced tariffs were more aggressive than anticipated, including a 10% levy on all exports to the U.S. and even steeper rates for about 60 countries
- While key commodities like energy, steel, and aluminum were exempt, markets are rattled by the potential drag on global consumption
  - Major partners, including China and the EU, pledged retaliation
OPEC+ to Ramp Up Output in May (Bloomberg)
- OPEC+ will boost production by 411 MBbls/d next month, surpassing expectations and adding pressure to already sliding oil prices
- The group is set to reconvene on May 5 to determine June output levels
Gasoline Futures Sink in New York (Bloomberg)
- NY gasoline futures recorded their steepest drop since September following the tariff news

Natural gas trades higher, extending yesterday’s gains
- Temperatures are forecast to be below the ten-year average for the next two weeks, reducing the size of inventory builds
- The tariffs imposed by the Trump administration should have little direct impact on Henry Hub pricing, although the situation remains uncertain
Tariffs could hurt demand for NGLs (BBG)
- According to shipping analytics firm Kpler, the new tariffs could dampen petrochemical demand, weighing on NGL markets
- “Higher costs for finished goods and countermeasures by major trading partners cause demand destruction through the petchem value chain”
LNG Canada receives cooldown cargo ahead of start-up (BBG)
- An LNG cargo is being delivered to the site of LNG Canada, which should precede start-up operations
- The export plant is scheduled to begin operations later this year, and has been taking small quantities of gas