Oil prices fell 1% on Monday as concerns grew that U.S. tariffs on Canada, Mexico, and China could slow global economic growth and weaken energy demand, while OPEC+ prepares to increase supply. Brent crude settled down $1.08 (1.5%) at $69.28, and WTI dropped $1.01 (1.5%) to $66.03. WTI posted its seventh consecutive weekly decline, the longest streak since November 2023, while Brent recorded its third straight weekly loss.
Markets remain volatile as U.S. President Donald Trump’s shifting trade policies continue to impact sentiment. Over the weekend, Commerce Secretary Howard Lutnick reaffirmed that Trump would maintain tariff pressure on key trading partners, fueling concerns of an economic downturn. Equities also slid, with the S&P 500 down 2% and the Nasdaq falling over 3%.
On the supply side, Russia’s Deputy Prime Minister Alexander Novak stated that OPEC+ will begin increasing production in April but may reconsider if market conditions worsen. Additionally, the U.S. is intensifying efforts to curb Iranian oil exports, though Iran’s Supreme Leader Ayatollah Ali Khamenei insisted Tehran will not yield to pressure.
Potential sanctions on Russia and Iran could provide short-term price support, but broader economic uncertainties are likely to limit any sustained oil rally, according to PVM analyst Tamas Varga. Oil rebounded from six-month lows on Friday after Trump threatened further sanctions on Russia over Ukraine, while reports suggest the U.S. is exploring ways to ease Russian energy sanctions if Moscow agrees to end the war.