FX.co ★ Oil Falls on OPEC+ Output Hike and Trump’s Tariffs

WTI crude oil futures declined to approximately $68.9 per barrel on Monday, impacted by the anticipated increase in OPEC+ production and apprehensions regarding the ramifications of U.S. tariffs. The OPEC+ group, spearheaded by Saudi Arabia and Russia, is slated to commence a gradual enhancement of output in April. Reports indicate that the group is expected to persist in raising output into May. Furthermore, President Donald Trump's implementation of reciprocal tariffs, scheduled to take effect on April 2, has escalated fears of a potential global trade war, which could impede economic growth and suppress energy demand. At the same time, Trump's recent threats against Russia and Iran did not succeed in boosting oil prices. On Sunday, Trump stated he might impose secondary tariffs ranging from 25% to 50% on purchasers of Russian oil if he perceives that Moscow is hindering his efforts to conclude the Ukraine conflict. He also warned of additional tariffs and possible military actions against Iran should Tehran fail to reach an agreement with the U.S. concerning its nuclear program.