Brent falls toward four-month low on OPEC+ output hike

Brent crude oil futures fell to $70.8 per barrel on Tuesday, nearing a four-month low, as investors reacted to expectations of an increase in supply following OPEC+’s decision to proceed with a planned output hike in April.

Brent falls toward four-month low on OPEC+ output hike

The group, which includes OPEC members and allies like Russia, will raise production by 138,000 barrels per day, marking the first increase since 2022. The move signals confidence in market stability but also raises concerns about a potential supply glut. Additionally, geopolitical developments added to the bearish sentiment. US President Donald Trump’s decision to pause military aid to Ukraine, following tensions with Ukrainian President Zelenskyy, fueled speculation about a possible de-escalation of the conflict. A reduction in hostilities could pave the way for sanctions relief on Russia, further increasing global oil supply and weighing on prices.

Tariffs influenced oil market

Meanwhile, the market also braced for new US tariffs on imports from Canada, Mexico, and China. Analysts warn that these trade measures could slow global economic growth, dampen industrial activity, and reduce oil demand, adding further downward pressure on crude prices. Moreover, a stronger US dollar, driven by expectations of a prolonged high-interest-rate environment, made oil more expensive for foreign buyers, compounding the weakness in prices.