BEIJING/SINGAPORE- Oil prices extended losses on Tuesday following reports that OPEC+ will proceed with a planned output increase in April while markets braced for US tariffs on Canada, Mexico and China to take effect.
Brent futures fell 49 cents, or 0.7 percent, to $71.13 a barrel as US West Texas Intermediate (WTI) crude eased 26 cents, or 0.4 percent, to $68.11.
“The current downward trend in oil prices is primarily driven by OPEC+’s decision to increase output and the introduction of US tariffs,” said Darren Lim, commodities strategist at Phillip Nova.
A further complicating factor was geopolitical developments related to the Russia-Ukraine conflict, he added.
Trump’s pause in all US military aid to Ukraine followed his Oval Office clash with President Volodymyr Zelenskiy last week.
The Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, known as OPEC+, decided to proceed with a planned April oil output increase of 138,000 barrels per day, the group’s first since 2022.
“While this decision aims to gradually unwind previous output cuts, it has raised concerns about a potential oversupply in the market,” said Lim.
US President Donald Trump’s 25 percent tariffs on imports from Canada and Mexico are set to take effect at 12:01 a.m. EST (0501 GMT) on Tuesday with 10 percent tariffs for Canadian energy, while imports on Chinese goods will increase to 20 percent from 10 percent.
