Oil Holds Losses Near Three-Month Low After OPEC+ Signals Hike
Oil held near the lowest in almost three months after OPEC+ signaled plans to revive halted production, just as the Trump administration threatens trade wars on multiple fronts.
West Texas Intermediate traded near $68 a barrel after dropping 2% on Monday, while Brent closed below $72. In a surprise move, the producer group will start increasing output in April following repeated delays, though OPEC+ said the boost could be paused or reversed subject to market conditions.
Oil has trended lower since mid-January on concerns about lackluster demand and the fallout from President Donald Trump’s trade policies. US tariffs on China, Canada and Mexico come into effect on Tuesday, and the market will be watching for any retaliatory measures.
Global oil markets face a supply surplus this year even if OPEC+ keeps output flat, according to the International Energy Agency. The cartel, which is led by Saudi Arabia and Russia, plans to increase production by 138,000 barrels a day from next month, according to a statement posted on its website.
WTI for April delivery was little changed at $68.36 a barrel at 7:29 a.m. in Singapore.
Brent for May settlement closed 1.6% lower at $71.62 a barrel on Monday.
Source : Bloomberg
