Global oil prices began to fall after the OPEC+ alliance announced that it would maintain its planned production increase in April. In addition, the entry into force of US tariffs on oil imported from Canada, Mexico, and China played a role in the decline, Reuters writes.
Brent crude futures fell by $1.27, or 1.8%, to $70.35 a barrel, while West Texas Intermediate (WTI) crude fell by $1.10, or 1.6%, to $67.27.
“The main reasons for the decline in oil prices are the OPEC+ decision to increase production, as well as the tariffs imposed by the United States,” said Darren Lim, a commodities strategist at Phillip Nova.
He said another factor was US President Donald Trump’s decision to suspend military aid to Ukraine.
The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, decided to increase oil production by 138,000 barrels daily in April on Monday. This is the group’s first such move since 2022.
“This decision by OPEC+ was unexpected for the market,” said Bjarne Schieldrop, chief commodities analyst at SEB Bank.
