Oil prices are falling amid tensions over uncertainty regarding US tariffs

Oil prices fell on Monday amid concerns about the impact of U.S. import tariffs on global economic growth and fuel demand, as well as how increased production by OPEC+ producers has cooled investors’ appetite for riskier assets, reports Reuters, writes UNN.

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Brent crude oil fell in price by 31 cents, or 0.4%, to $70.05 per barrel by 04:45 GMT (6:45 Kyiv time) after rising by 90 cents on Friday. U.S. West Texas Intermediate crude was priced at $66.69 per barrel, down 35 cents, or 0.5%, after closing 68 cents higher in the previous trading session.

WTI is declining for the seventh consecutive week, marking the longest streak of losses since November 2023, while Brent is down for the third week in a row after U.S. President Donald Trump imposed delayed tariffs on its key oil suppliers Canada and Mexico, while also raising tariffs on Chinese goods. China responded to the U.S. and Canada with tariffs on agricultural products.

“Uncertainty over tariffs is a key factor in the weakness,” analysts at ING said in a note, adding that falling oil prices in Saudi Arabia and deflationary signals from China have also hurt sentiment.

IG analyst Tony Sycamore stated that other factors affecting oil prices include concerns about economic growth in the U.S., the potential lifting of U.S. sanctions on Russia, and OPEC+’s decision to increase production.

“However, given the large amount of bad news, we expect weekly support around $65/$62 to hold before a recovery to $72.00,” he said in a client note regarding WTI prices.

Oil prices slightly rebounded from losses on Friday after Trump stated that the U.S. would tighten sanctions on Russia if it fails to achieve a ceasefire with Ukraine.

The U.S. is also exploring ways to ease sanctions against the Russian energy sector if Russia agrees to end the war with Ukraine, two people familiar with the situation told Reuters.

US is considering how quickly to ease sanctions against Russia in the energy sector – Reuters08.03.25, 09:04 • 47013 views

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, including Russia, collectively known as OPEC+, stated that they would continue to increase oil production from April.

Russian Deputy Prime Minister Alexander Novak stated on Friday that OPEC+ could reconsider its decision in the event of a market imbalance.

In addition to supply concerns, Saudi Arabia lowered the prices of crude oil it sells to Asia for the first time in three months in April.

Last week, Trump stated that he wants to negotiate with OPEC member Iran to prevent it from pursuing nuclear weapons, although Iran has stated that it does not seek such weapons.

Trump is conducting a “maximum pressure” campaign against Iran, under which the U.S. on Saturday revoked a waiver that allowed Iraq to pay Iran for electricity, a State Department representative reported.

Iran’s Supreme Leader Ayatollah Ali Khamenei stated on Saturday that his country will not allow itself to be intimidated and will not start negotiations.

Iran refuses to negotiate with the US regarding its nuclear program as long as “threats are being made”07.03.25, 19:01 • 19568 views