Oil prices fall amid trade tensions, OPEC+ decision

Oil drilling rigs

Oil prices declined today, March 4, as the tariffs imposed by the United States on its trading partners, including China, took effect.

The tariff decision sparked a trade war, with China immediately responding with retaliatory levies on some US goods, and Canada imposing tariffs on $107 billion worth of US imports.

Brent crude was trading down 0.75% at $71.08 a barrel, at 9:15 am Makkah time. West Texas Intermediate (WTI) crude fell 0.47% to $68.05 a barrel.

Prices slipped in the previous session following OPEC+ announcement that it would begin increasing production in April, after repeated postponements, although the increase may be temporarily halted or reversed based on market conditions.

Oil is under pressure on two fronts, said Warren Patterson, Head of Commodity Strategy at ING, citing increased supply from OPEC+ and US tariffs. Retaliatory tariffs mean more escalation, which will only add to the uncertainty around growth and demand prospects, Bloomberg reported.