Geopolitical events related to the Russian and Ukraine conflict have become an additional factor that influences the oil market.
Oil prices in the world fell on Tuesday after reports that OPEC will conduct a planned increase in production in April. At the same time, the markets are preparing for the entry of the new tariffs introduced by the US president against Canada, Mexico and China. About this writes Reuters on March 4.
Up to 10:30 at KYIV, Brent brand futures fell 0.91% to $ 70.71 per barrel, which reduced minimums on December 6, 2024. WTI contracts reduced by 1.08% to $ 67.63 also the first time since December.
“The current downward trend of oil prices is largely due to OPEC+ deciding on increasing manufacture and introduction of US tariffs,” said Darren Lim, a strategist on raw materials on Phillip Nova.
The additional factor that complicated the situation was geopolitical events related to the Russian and Ukraine conflict, he added.
Trump suspended all military assistance in Ukraine after a dispute with the President of Ukraine Vladimir Zelensky at the Oval Office last week.
Meanwhile, OPEC+ countries have decided to implement the planned oil production of 138 thousand barrels per day for the first time since 2022.
“Although this decision aims to gradually prevent previous production cuts, it has led to fears about potentially excessive supply in the market,” Lim said.
Trump’s tariffs of 25% for imports from Canada and Mexico have entered today. In addition, import duties from China rose 20% out of 10%.
Analysts expect tariffs to affect economic activity and fuel demand, putting pressure on oil.
In this regard, China and Canada introduced the appropriate duties for American goods after Donald Trump’s decision to release the trade war.
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Source: korrespondent
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