Oil prices declined for a second straight day as concerns over U.S. tariffs on Canada, Mexico, and China fueled fears of a global economic slowdown, impacting energy demand. Meanwhile, OPEC+ is set to increase oil production, adding further pressure on prices.
Brent crude fell 0.42% to $68.99 per barrel, while U.S. West Texas Intermediate (WTI) dropped 0.55% to $65.67. Market uncertainty surged as U.S. President Donald Trump's trade policies disrupted global markets. His administration has imposed, delayed, and raised tariffs on major oil suppliers, prompting retaliatory actions from China and Canada. Trump acknowledged the possibility of an economic "transition period" but refrained from predicting a recession.
Investor concerns over slowing demand triggered a sell-off, with the S&P 500 suffering its biggest one-day drop since December 18. The Nasdaq plummeted 4%, marking its steepest decline since September 2022. Analysts fear continued tariff tensions could further weaken economic growth and energy demand.
On the supply side, Russia's Deputy Prime Minister Alexander Novak confirmed that OPEC+ will boost oil production starting in April, with the possibility of reversing the decision if market conditions warrant. Meanwhile, U.S. crude stockpiles were expected to have risen last week, according to a Reuters poll. Reports from the American Petroleum Institute and the Energy Information Administration are anticipated to provide further insights.
The combination of trade tensions, stock market volatility, and increasing oil supply continues to drive uncertainty in global energy markets, keeping investors on edge.