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Oil prices held relatively steady on Monday as investors weighed mixed signals from U.S. import tariffs, potential growth headwinds, and rising production by OPEC+ members. At 08:56 GMT, Brent crude was down 11 cents at $70.25 per barrel, while West Texas Intermediate (WTI) crude was trading at $66.87 per barrel, down 17 cents on the day.
Last week marked WTI’s seventh consecutive weekly loss—the longest streak since November 2023—while Brent recorded its third straight weekly decline. Market participants remain cautious amid U.S. President Donald Trump’s recent protectionist moves, which include imposing and then delaying tariffs on key suppliers such as Canada and Mexico, as well as raising duties on Chinese goods. These measures have triggered retaliatory tariffs from both China and Canada.
Additional factors weighing on oil include concerns about a slowdown in U.S. economic growth, potential moves to lift U.S. sanctions against Russia, and anticipated output increases by OPEC+ producers, according to IG analyst Tony Sycamore. Oil rebounded from six-month lows on Friday after Trump announced plans to increase sanctions on Russia if a ceasefire deal with Ukraine is not reached. Meanwhile, the U.S. is also exploring options to ease sanctions on Russia’s energy sector should Russia agree to end the conflict.
On the supply front, Russia’s Deputy Prime Minister Alexander Novak indicated that OPEC+ could reverse its current production cuts if market imbalances worsen. In a related move, Trump is aiming to choke off Iranian oil exports as part of broader efforts to pressure Iran over its nuclear program, though Iran’s Supreme Leader Ayatollah Ali Khamenei vowed on Saturday that the country would not be bullied into negotiations.
Investors will closely monitor upcoming monthly reports from the International Energy Agency and OPEC for updated demand and supply forecasts as the market continues to navigate these geopolitical and economic uncertainties.
