LONDON: Oil prices were down 1pc on Monday as uncertainty about US tariffs and rising output from OPEC+ producers pressured the market, although potential sanctions on Iranian crude exports limited losses.

Brent crude was down 71 cents, or 1pc, at $69.65 a barrel by 1800 GMT. U.S. West Texas Intermediate crude lost 65 cents to $66.39, also shedding 1pc. Last week marked WTI’s seventh consecutive weekly decline, the longest losing streak since November 2023, while Brent fell for a third consecutive week.

US President Donald Trump’s protectionist policies have roiled markets across the world, with Trump imposing and then delaying tariffs on its biggest oil suppliers Canada and Mexico while also raising duties on Chinese goods. China and Canada have responded with tariffs of their own.

“This market is on tenterhooks and there’s a lot to be processing as we move forward,” said John Kilduff, partner with Again Capital in New York.

Investors view uncertainty over US tariffs as a negative, leading to a possible economic slowdown that could curtail oil demand. The benchmark S&P 500, which crude prices often follow, has fallen more than 8pc from its February high amid concern about tariffs.

Possible sanctions against Iran and Russia could provide support in the short term, said PVM analyst Tamas Varga. “Looking at the bigger picture, lingering uncertainties will likely make any oil rally brief,” Varga said.

Oil rebounded from six-month lows on Friday after Trump said the United States would intensify sanctions on Russia if it fails to reach a ceasefire deal with Ukraine.

Published in Dawn, March 11th, 2025