On March 4, global oil prices fell after reports that OPEC+ would continue its planned production increase in April. At the same time, markets are assessing the possible consequences of US tariffs on Canada, Mexico and China, as well as potential retaliatory measures from Beijing. About this informs Reuters.
Brent futures fell 57 cents, or 0.8 percent, to $71.05 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 39 cents, or 0.6 percent, to $67.98.
“The current downward trend in oil prices is due primarily to the decision of OPEC+ to increase production and the introduction of US tariffs”, explained Darren Lim, commodities strategist at Phillip Nova.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, in particular Russia, united in the OPEC+ format, decided in April to increase oil production by 138,000 barrels. barrels per day. This will be the first such expansion for the group since 2022.
“While the decision is aimed at phasing out previous production cuts, it has raised concerns about a potential oversupply in the market,” said Lim.
