Oil costs decline as traders proceed to stress over tariff affect

By Florence Tan

SINGAPORE (Reuters) – Oil costs fell on Monday as concern concerning the affect of U.S. import tariffs on international financial progress and gasoline demand, in addition to rising output from OPEC+ producers, cooled investor urge for food for riskier property.

Brent crude fell 25 cents, or 0.4%, to $70.11 a barrel by 0037 GMT after settling up 90 cents on Friday. U.S. West Texas Intermediate crude was at $66.76 a barrel, down 28 cents, or 0.4%, after closing 68 cents greater within the earlier buying and selling session.

WTI declined for a seventh successive week, the longest shedding streak since November 2023, whereas Brent was down for a 3rd consecutive week after U.S. President Donald Trump imposed then delayed tariffs on its key oil suppliers Canada and Mexico whereas elevating taxes on Chinese language items. China retaliated in opposition to the U.S. and Canada with tariffs on agricultural merchandise.

“Crude oil was weighed down final week by U.S. tariff uncertainty, U.S. progress considerations, the potential lifting of U.S. sanctions on Russia, and OPEC+ opting to extend output,” IG analyst Tony Sycamore mentioned in a shopper word.

“Nonetheless, with a lot of the unhealthy information seemingly factored in, we count on weekly help round $65/$62 to carry agency earlier than a restoration again to $72.00,” he mentioned in reference to the WTI worth.

Oil costs clawed again some loss on Friday after Trump mentioned the U.S. would enhance sanctions on Russia if the latter fails to achieve a ceasefire with Ukraine.

The U.S. can also be learning methods to ease sanctions on Russia’s power sector if Russia agrees to finish its conflict with Ukraine, two individuals aware of the matter informed Reuters.

In the meantime, the Group of the Petroleum Exporting Nations and allies together with Russia, collectively often known as OPEC+, mentioned it’s going to proceed with oil output hikes from April.

Russia’s Deputy Prime Minister Alexander Novak on Friday mentioned OPEC+ might reverse the choice within the occasion of market imbalance.

Final week, Trump mentioned he wished to barter a cope with OPEC member Iran to stop the latter looking for nuclear weapons – although Iran has mentioned it isn’t looking for such weapons.

Trump is pursuing a “most strain” marketing campaign in opposition to Iran underneath which the U.S. on Saturday rescinded a waiver that allowed Iraq to pay Iran for electrical energy, a State Division spokesperson mentioned.

Iran’s Supreme Chief Ayatollah Ali Khamenei on Saturday mentioned his nation is not going to be bullied into negotiations.

(Reporting by Florence Tan; Enhancing by Christopher Cushing)