Crude Oil Prices Decline as OPEC+ Output Hike and Trade Tensions Weigh on Market

Crude oil prices extended their losing streak, with Brent falling below $70 per barrel for the first time since December 2021. The decline comes amid concerns over OPEC+ increasing production and escalating trade tensions between the U.S. and major economies. Oil markets remained under pressure as OPEC+ announced a modest supply boost of 138,000 barrels per day starting in April. While the increase is relatively small, it signals a shift toward unwinding production cuts, raising fears of further supply additions in the coming months. At the same time, the U.S. imposed tariffs on Canada, China, and Mexico, triggering swift retaliatory measures. The prospect of a prolonged trade war has intensified worries about slower economic growth, which could dampen global fuel demand. Canada and China have already announced countermeasures, while Mexico is expected to follow. Adding to the pressure, U.S. crude oil inventories rose significantly, signaling weaker demand. The Biden administration's decision to end Chevron's license to operate in Venezuela could remove up to 200,000 barrels per day from global supply, but the market remains cautious about its overall impact. Despite minor short-covering rallies, oil prices remain in a bearish zone, with traders cautious about the uncertain demand outlook. If trade tensions escalate further and supply pressures persist, crude prices could continue their downward trajectory in the coming weeks.