West Texas Intermediate was 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.
Global oil markets face a supply surplus this year even if OPEC+ keeps output flat, the International Energy Agency said in a report last month. The cartel, led by Saudi Arabia and Russia, plans to increase production by 138,000 barrels a day, according to a statement posted on its website.
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 its trading partners — China, Canada and Mexico — come into effect on Tuesday, and the market will be watching for any retaliatory measures.
China is considering actions targeting American agriculture and food products, according to the Global Times, a Communist Party-backed news outlet, while Canada’s foreign minister said the nation has prepared a sweeping package of counter-tariffs against US-made products.
Trump’s executive order calls for 25% levies against most of what the US imports from Canada and Mexico, and 10% on Canadian energy such as crude. While Mexico could reroute flows to Asia and Europe, Canada is, by most measures, stuck with selling the majority of its oil to American refiners.
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