Oil prices extended their decline for a second consecutive session on Tuesday as concerns over United States tariffs raised fears of a global economic slowdown, while expectations of increased supply from OPEC+ added further pressure to the market.
By 3:50 pm AEDT (4:50 am GMT) Brent crude futures dropped $0.05 or 0.1%, to US$69.23 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped $0.12 or 0.2%, to $65.91 per barrel.
Market sentiment remained fragile as United States President Donald Trump’s protectionist trade measures continued to unsettle global markets.
Trump has imposed and later postponed tariffs on Canada and Mexico - two of the largest oil suppliers to the U.S. - while simultaneously raising duties on Chinese imports.
Both China and Canada have retaliated with countertariffs, fueling further uncertainty.
Over the weekend, Trump acknowledged that the economy might undergo a "period of transition" but stopped short of predicting whether the U.S. could slip into a recession.
ANZ analysts commented in a note to clients: "Current conditions remain unconducive for further growth in oil supply, particularly from the U.S. shale oil sector. Current prices are unlikely to improve the margins some producers are currently obtaining.
“They are also mindful that OPEC is about to commence its planned production hikes. These factors will likely see the sector consolidate, rather than expand.”
