Oil Falls on OPEC+ Output Hike and Trump’s Tariffs
WTI crude oil futures dropped to around $68.9 per barrel on Monday, weighed down by looming OPEC+ production increase and concerns about the impact of U.S. tariffs. The OPEC+ group, led by Saudi Arabia and Russia, is set to begin gradual output hike in April, with reports suggesting the group will likely continue to raise output in May.
Additionally, President Donald Trump’s reciprocal tariffs, set to take effect on April 2, have heightened fears of a global trade war that could slow economic growth and curb energy demand. Meanwhile, Trump's latest threats against Russia and Iran failed to lift oil prices.
On Sunday, Trump said he could impose secondary tariffs of 25% to 50% on buyers of Russian oil if he feels Moscow is obstructing his efforts to end the Ukraine war. He also warned of additional tariffs and military strikes on Iran if Tehran fails to reach an agreement with the U.S. regarding its nuclear program.
Source: Trading Economics