NEW YORK: Oil prices were lower on Monday as concern over the impact of US tariff uncertainty and rising output from OPEC+ producers pressured the commodity, while potential sanctions on Iranian oil exports kept prices from falling farther.
Brent crude shed by 44 cents to $69.92 a barrel by 10:22 a.m. EDT (1522 GMT). US West Texas Intermediate crude lost 40 cents to $66.64. Last week marked WTI’s seventh consecutive weekly decline, the longest losing streak since November 2023, while Brent fell for a third consecutive week.
US President Donald Trump’s protectionist policies have roiled markets across the world, with Trump imposing and then delaying tariffs on its biggest oil suppliers Canada and Mexico while also raising duties on Chinese goods. China and Canada have responded with tariffs of their own.
“This market is on tenterhooks and there’s a lot to be processing as we move forward,” said John Kilduff, partner with Again Capital in New York. Investors view uncertainty over US tariffs as negative, but possible sanctions against Iran and Russia could provide support in the short term, said PVM analyst Tamas Varga.
“Looking at the bigger picture, lingering uncertainties will likely make any oil rally brief,” Varga said. Oil rebounded from six-month lows on Friday after Trump said the United States would intensify sanctions on Russia if it fails to reach a ceasefire deal with Ukraine.
At the same time, the US is studying ways to ease sanctions on Russia’s energy sector if Moscow agrees to end its war with Ukraine, two people familiar with the matter told Reuters.
Russia’s Deputy Prime Minister Alexander Novak on Friday said that OPEC+ could reverse the decision in the event of market imbalance. Also on the supply front, Trump is seeking to choke off Iranian oil exports as part of efforts to pressure the country to rein in its nuclear programme.
Iran’s Supreme Leader Ayatollah Ali Khamenei said on Saturday that his country will not be bullied into negotiations. Later this week, investors will assess monthly reports from the International Energy Agency and OPEC for demand and supply forecasts.
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