Crude oil prices decline amid tariffs, OPEC production increase

WEB DESK: Crude oil prices fell sharply  by 7 per cent in the global market, with the Brent crude oil trading at $70 per barrel and the West Texas Intermediate (WTI) at $66 per barrel.

The decline is attributed to a combination of geopolitical tensions, trade policies and production decisions by major oil-producing nations.

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The recent imposition of tariffs by the United States (US) controversial President, Donald Trump, significantly impacted the oil market. The tariffs targeted several countries, including the North American country’s closest allies. It also raised concerns about potential disruptions in the international trade.

The US has been a dominant player in the global oil landscape, and changes in its trade policies can create ripples throughout the market.

Analysts suggest that the tariffs may lead to reduced demand for oil from certain regions, leading to the downward pressure on prices.

The Organisation of the Petroleum Exporting Countries (OEPC) and its allies, announced plans to increase oil production. The decision comes in response to fluctuating demand and the need to stabilise prices amid economic uncertainties.

By raising production levels, the OPEC aims to ensure that supply meets demand; however, the move can also lead to an oversupply in the market, further driving prices down.

The decline in crude oil prices has also been accompanied by a rise in natural gas prices, which increased by 2 per cent to $4.14 per million British thermal units (MMBTU).

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The uptick in gas prices may reflect shifting energy consumption patterns,  as some industries and consumers turn to natural gas as a more stable alternative to crude oil.