Oil prices fell on Monday, weighed down by concerns over the economic impact of United States import tariffs, rising production from OPEC+ producers, and subdued investor sentiment.
By 3:15 pm AEDT (4:15 am GMT) Brent fell $0.39 or 0.5% to US$70.04 per barrel, while WTI crude was down $0.36 or 0.5% to US$66.68 per barrel.
WTI posted a seventh consecutive weekly decline - the longest losing streak since November 2023 - while Brent fell for the third straight week.
The declines come amid U.S. President Donald Trump's imposition and subsequent delay of tariffs on key oil suppliers Canada and Mexico, along with increased levies on Chinese imports. In response, China imposed retaliatory tariffs on agricultural goods from the U.S. and Canada.
Meanwhile, Bloomberg reported that Russia is open to discussing a temporary truce in Ukraine, provided progress is made toward a final peace settlement. "Russia is willing to discuss a temporary truce in Ukraine provided there is progress toward a final peace settlement," sources familiar with the matter stated.
ANZ analysts noted, “Despite Trump deferring sanctions on Canada and Mexico, the physical market continues to adjust. Tankers carrying fuel from Canada destined for the U.S. started to divert to Europe prior to the news of the delay, which led Canadian heavy crude rallying.”
Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, confirmed that oil production increases would proceed as planned from April. Russia's Deputy Prime Minister Alexander Novak stated that OPEC+ could reconsider its decision should market imbalances arise.
