Oil prices extended their slide on Tuesday as Brent crude fell 1.5% to $70.53 and U.S. West Texas Intermediate (WTI) dropped 1.3% to $67.51.
The move lower followed an unexpected decision by OPEC+ to raise output for the first time since 2022, approving an additional 138,000 barrels per day in April. The modest supply increase nevertheless surprised markets and added downward pressure on prices.
At the same time, a new round of U.S. tariffs on imports from Canada, Mexico and China took effect. China responded quickly by raising duties on a range of American agricultural products, escalating trade tensions and clouding near-term demand prospects for oil.
Market participants also flagged political developments in Washington as a factor. President Trump’s pause on military aid to Ukraine has fueled speculation that future policy shifts could lead to sanctions relief for Russia, potentially allowing more Russian oil to enter global markets.
Analysts summed up the picture as a “perfect storm for crude,” where rising supply from OPEC+ and the prospect of increased Russian exports combine with weaker demand expectations driven by trade disputes. Together, these forces are weighing on prices and increasing downside risks for the oil market.
Going forward, traders will be watching whether OPEC+ follows through with further production adjustments, how trade tensions evolve, and any policy changes in Washington that might alter the flow of Russian oil. Those developments will be key to determining whether the recent decline stabilizes or continues.