Oil prices dropped on Monday, pressured by concerns over U.S. tariff uncertainty and rising output from OPEC+ producers.
At 10:22 a.m. EDT (1522 GMT), Brent crude fell by 44 cents to $69.92 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 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 the third straight week. U.S. President Donald Trump’s protectionist trade policies, including tariffs on oil suppliers Canada and Mexico, have caused market instability, with China and Canada retaliating with their own tariffs.
The ongoing uncertainty regarding U.S. tariffs has negatively impacted investor sentiment. However, potential sanctions on Iranian and Russian oil exports have provided some support for prices. Oil prices rebounded on Friday after Trump announced plans to intensify sanctions on Russia if it fails to reach a ceasefire agreement with Ukraine.
The U.S. is also exploring ways to ease sanctions on Russia’s energy sector if Moscow ends its war with Ukraine.
On the supply side, OPEC+ has been increasing production, and Trump is working to curb Iranian oil exports as part of efforts to pressure Iran over its nuclear program. Iran’s Supreme Leader Ayatollah Ali Khamenei rejected U.S. demands for negotiations on Saturday, saying the country will not be coerced into talks.
Investors will closely monitor monthly reports from the International Energy Agency and OPEC later this week for updates on global demand and supply forecasts.
