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At 11:08 GMT, Light Crude Oil futures are trading $67.05, down $1.21 or -1.77%.
OPEC+ Supply Increase Adds Pressure on Oil Prices
Oil prices extended their decline for a third consecutive session as concerns mounted over OPEC+’s decision to increase production starting in April. The group announced a modest supply boost of 138,000 barrels per day, the first step toward unwinding its nearly 6 million bpd of cuts. While the increase is relatively small, the market is wary that it could signal the beginning of more substantial production hikes in the coming months. Analysts remain divided on whether OPEC+ will proceed cautiously or gradually restore more barrels if demand conditions allow.
Trade Tensions Escalate, Raising Economic Growth Concerns
Market sentiment took another hit as U.S. President Donald Trump imposed tariffs on Canada, China, and Mexico, triggering swift retaliatory measures. The prospect of an escalating trade war has intensified fears of slower economic growth, which could dampen global fuel demand. Canada and China responded immediately with countermeasures, while Mexico signaled that it would follow suit. Analysts warn that prolonged trade tensions could further weigh on crude prices by curbing industrial activity and oil consumption.
U.S. Supply Developments Provide Limited Support
In the U.S., crude stockpiles fell by 1.46 million barrels last week, according to the American Petroleum Institute (API). Investors are awaiting official government inventory data, which could provide more clarity on domestic supply trends. Meanwhile, the Biden administration’s decision to end Chevron’s license to operate in Venezuela could remove up to 200,000 bpd from global supply, adding a layer of uncertainty to the market.
Market Outlook: Bearish Bias Prevails
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