The United States Oil Fund LP (USO) experienced a sharp 7.46% pre-market plunge on Thursday, as crude oil prices tumbled following OPEC+'s decision to increase output and rising concerns over a potential global trade war.

OPEC and its allies, including Russia, announced plans to accelerate the return of withheld barrels in May, increasing output by 411,000 barrels per day. This larger-than-expected hike, equivalent to three monthly increments, caught the market off guard and put downward pressure on oil prices. The decision was based on what OPEC+ described as "healthy market fundamentals" and a "positive market outlook."

Adding to the oil market's woes, U.S. President Trump's announcement of new tariffs heightened fears of a global trade war. These concerns, coupled with a broader market selloff, further dampened the outlook for oil demand. The energy sector as a whole saw significant declines, with the Energy Select Sector SPDR Fund (XLE) down 4.8% in pre-market trading.

As a result of these factors, West Texas Intermediate (WTI) crude oil futures plummeted by 6.6% to $66.96 per barrel, while Brent crude fell 6.1% to $70.36 per barrel. The sharp decline in oil prices directly impacted the United States Oil Fund, which tracks the daily price movements of WTI crude oil.

Investors will be closely monitoring further developments in OPEC+ production plans, global trade tensions, and overall market sentiment as they assess the near-term outlook for oil prices and related exchange-traded funds like USO.