Oil prices fell on Monday over the impact of U.S. import tariffs on global economic growth and fuel demand, as well as rising output from OPEC+ producers.
Brent crude fell 6 cents to $70.30 a barrel by 0720 GMT after settling up 90 cents on Friday.
U.S. West Texas Intermediate crude was at $66.96 a barrel, down 8 cents after closing 68 cents higher in the previous trading session.
Latest data by the Organization of the Petroleum Exporting Countries secretariat as of March 3, said the price of its basket of twelve crudes stood at $75,16 a barrel on Friday, compared with $74,98 the previous day.
WTI declined for a seventh successive week, the longest losing streak since November 2023, while Brent was down for a third consecutive week after U.S. President Donald Trump imposed then delayed tariffs on its key oil suppliers Canada and Mexico, while raising taxes on Chinese goods.
China retaliated against the U.S. and Canada with tariffs on agricultural products.
“Tariff uncertainty is a key driver behind the weakness,” ING analysts said in a note, adding that oil price cuts from Saudi Arabia and deflationary signals from China also hurt sentiment.
IG analyst Tony Sycamore told Reuters that other factors weighing on oil prices include concerns about U.S. growth, the potential lifting of U.S. sanctions on Russia, and OPEC+ opting to increase output.
“Nonetheless, with much of the bad news likely factored in, we expect weekly support around $65/$62 to hold firm before a recovery back to $72.00,” he said in a client note in reference to the WTI price.
Oil prices clawed back some loss on Friday after Trump said the U.S. would increase sanctions on Russia if the latter fails to reach a ceasefire with Ukraine.
The U.S. is also studying ways to ease sanctions on Russia’s energy sector if Russia agrees to end its war with Ukraine, according to Reuters.
