Oil prices edged lower on Tuesday, weighed down by renewed U.S. tariff actions and a fresh decision by the OPEC+ alliance to ramp up crude production.
Brent crude, the international benchmark, declined 0.3% to trade at $68.96 per barrel as of 10 a.m. local time (0700 GMT), down from $69.18 at the previous session’s close. U.S. benchmark West Texas Intermediate (WTI) also fell, slipping 0.4% to $66.74 per barrel from $67.04.
The downturn followed an announcement by U.S. President Donald Trump, who revealed new tariffs targeting 14 countries. Shared via social media on Monday, the letters outlined an additional 25% tariff on all imports from Japan and South Korea beginning August 1, on top of existing sector-specific duties.
Trump further warned that goods rerouted through third countries to circumvent the tariffs would face even steeper levies. He indicated that retaliatory moves by targeted nations could trigger further tariff increases beyond the new baseline.
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25% on imports from Malaysia, Kazakhstan, and Tunisia
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30% for South Africa and Bosnia-Herzegovina
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32% for Indonesia
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35% for Bangladesh and Serbia
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36% for Cambodia and Thailand
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40% for Laos and Myanmar
Trump also signed an executive order extending the current tariff grace period, previously set to expire on July 9, to August 1.
The aggressive trade stance stoked fears of escalating global economic tensions, prompting concerns over future oil demand and pressuring prices.
Adding to the bearish sentiment, eight key members of the OPEC+ alliance — Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman — agreed to raise crude output by 548,000 barrels per day (bpd) in August.
The group has been steadily unwinding a collective 2.2 million bpd in voluntary cuts initiated in April. Production was previously increased by 138,000 bpd in April, and by 411,000 bpd each in May, June, and July.
The latest move raises concerns of a potential supply glut, compounding the impact of diminished demand expectations and contributing to the continued pressure on oil prices.
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