SINGAPORE (Reuters) – Oil prices dipped on Monday, driven by worries over the impact of U.S. import tariffs on global economic growth and fuel demand. Rising oil production from OPEC+ nations also contributed to weaker investor sentiment.
By 0037 GMT, Brent crude had fallen by 25 cents, or 0.4%, to $70.11 per barrel, after gaining 90 cents on Friday. U.S. West Texas Intermediate (WTI) crude was down by 28 cents, or 0.4%, at $66.76 per barrel, following a 68-cent rise in the previous session.
WTI experienced its seventh consecutive weekly decline, marking its longest losing streak since November 2023. Meanwhile, Brent saw its third straight week of losses. The declines followed U.S. President Donald Trump’s decision to impose, and later delay, tariffs on major oil suppliers Canada and Mexico, while also raising taxes on Chinese goods. In response, China retaliated with tariffs on U.S. and Canadian agricultural products.
“Last week, oil prices were pressured by U.S. tariff uncertainty, concerns over U.S. growth, the potential lifting of U.S. sanctions on Russia, and OPEC+’s decision to increase output,” said Tony Sycamore, an analyst at IG, in a client note.
Sycamore added, “However, with most of the negative news likely priced in, we expect support around $65/$62 for WTI, with a recovery to $72.00 possible.”
Oil prices rebounded slightly on Friday after President Trump stated that the U.S. would impose more sanctions on Russia if the country failed to reach a ceasefire with Ukraine.
The U.S. is also exploring ways to ease sanctions on Russia’s energy sector if Russia agrees to end its war with Ukraine, according to sources familiar with the matter.
In the meantime, OPEC+—the group of oil producers that includes Russia—has announced plans to continue increasing oil production starting in April. Russia’s Deputy Prime Minister, Alexander Novak, indicated on Friday that OPEC+ could reverse its decision if market conditions become unbalanced.
Last week, President Trump also expressed interest in negotiating a deal with Iran to prevent the country from pursuing nuclear weapons. Iran, however, maintains it has no such ambitions.
Under Trump’s “maximum pressure” campaign, the U.S. revoked a waiver on Saturday that allowed Iraq to pay Iran for electricity, according to a State Department spokesperson.
Iran’s Supreme Leader, Ayatollah Ali Khamenei, declared on Saturday that the country would not be coerced into negotiations.
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