Oil prices edged lower on Tuesday as markets reacted to increased OPEC+ output and uncertainty over U.S. tariffs.
Brent crude futures fell 10 cents to $69.48 a barrel by 1320 GMT, while U.S. West Texas Intermediate dropped 21 cents to $67.72.
The pullback followed a nearly 2% rise in the previous session. Investors are weighing the impact of a production hike by OPEC+ and potential pressure on demand from new U.S. trade measures.
On Saturday, OPEC+ agreed to raise production by 548,000 barrels per day in August, up from increases of 411,000 barrels per day in each of the previous three months. The group has now reversed nearly all of the 2.2 million barrels per day in voluntary cuts made since 2023.
Additional increases are expected, with a planned production boost of about 550,000 barrels per day for September to be decided at the next OPEC+ meeting on August 3.
U.S. President Donald Trump said on Monday that higher tariffs would begin on August 1, though he later signaled the deadline could shift. The tariffs have created uncertainty for global markets and raised concerns about their impact on economic growth and oil consumption.
Asian trading partners Japan and South Korea said they would seek talks with the U.S. to address the tariffs. At the same time, attacks on cargo ships and tight supplies of middle distillates have helped limit oil price declines.
Investor sentiment had remained strong ahead of the summer demand peak in the U.S., with data from the Commodity Futures Trading Commission showing an increase in long positions in crude oil futures as of July 1.
Analysts expect that once seasonal demand weakens, the additional supply from OPEC+ may weigh on prices. Some expect Brent crude to fall closer to $65 a barrel in the coming months as supply outpaces demand.
