Oil prices extended losses on Tuesday after reports emerged that OPEC+ is set to proceed with an output increase in April, while further price pressure mounted from U.S. tariffs on Canada, Mexico, and China, compounded by Beijing’s retaliatory tariffs.
Brent futures fell by $1.04 (1.45%) to $70.58 per barrel by 1417 GMT, with prices trading near a five-month low. U.S. West Texas Intermediate (WTI) crude was down 73 cents (1.07%) at $67.64.
“The current downward trend in oil prices is primarily driven by OPEC+’s decision to increase output and the introduction of U.S. tariffs,” said Darren Lim, commodities strategist at Phillip Nova.
OPEC+—which includes Russia and other key oil exporters—announced a planned output increase of 138,000 barrels per day for April, marking its first such move since 2022. This decision, taken amidst a complex geopolitical backdrop, has surprised the market and raised concerns about an oversupply in the global oil market.
Bjarne Schieldrop, chief commodities analyst at SEB, noted,
“The change in OPEC strategy looks like they are prioritising politics over price. Those politics are likely connected with the wheeling and dealing of Donald Trump.”
In addition to the OPEC+ decision, U.S. tariffs have further compounded the bearish sentiment. New tariffs include:
25% on imports from Canada and Mexico (with tariffs on Canadian energy set at 10%), and
An increase in tariffs on imports of Chinese goods from 10% to 20%.
Moreover, President Donald Trump’s decision to pause all U.S. military aid to Ukraine following a clash with President Volodymyr Zelenskiy added another layer of uncertainty to the market.
Investors looking for real-time data on these movements can track oil price trends using the Commodities API. Additionally, for a broader perspective on market performance amid these evolving global trade dynamics, the Sector Historical Overview API provides valuable insights.
As geopolitical and trade policies continue to shape the global energy landscape, the combined impact of increased supply and tariff pressures is expected to keep oil prices subdued in the near term.
