Oil Prices Drop Amid Tariff Concerns and Rising OPEC+ Output

Oil prices declined on Monday as investor concerns grew over U.S. import tariffs impacting global economic growth and fuel demand. Increased output from OPEC+ also contributed to the bearish sentiment.

Brent crude slipped 0.4% to $70.11 per barrel, while U.S. West Texas Intermediate (WTI) fell 0.4% to $66.76. WTI posted its seventh consecutive weekly decline, the longest since November 2023, and Brent marked its third straight week of losses. The downturn followed U.S. President Donald Trump's tariff policies, which raised tensions with key oil suppliers Canada, Mexico, and China. China retaliated with tariffs on U.S. and Canadian agricultural goods.

Market uncertainty deepened with discussions on potential U.S. sanctions relief on Russia’s energy sector, should Russia agree to a ceasefire in Ukraine. At the same time, Trump hinted at further sanctions if Russia fails to comply.

OPEC+ confirmed plans to increase oil production starting in April, but Russia’s Deputy Prime Minister Alexander Novak suggested a potential policy reversal if market conditions warrant. Meanwhile, Trump's push to negotiate with Iran over its nuclear ambitions faced resistance, as Iran’s Supreme Leader Ayatollah Ali Khamenei dismissed external pressure. The U.S. also revoked a waiver allowing Iraq to pay Iran for electricity, intensifying economic restrictions on Tehran.

Despite ongoing geopolitical risks, analysts see potential support for WTI around $65-$62, predicting a possible rebound to $72. Investors remain cautious as oil markets navigate supply shifts and macroeconomic pressures.