Crude Oil Sinks as Traders Await Tariff Update/Russia-Ukraine Talks
Oil prices fell Monday as investors awaited the conclusion of the Russia-Ukraine peace talks and prepared for President Donald Trump’s tariffs update. WTI crude futures dropped 30 basis points to $67.67 per barrel, while Brent oil futures expiring in May dropped by 40 basis points to $71.9 per barrel.
President Trump is scheduled to enact reciprocal tariffs on April 2 on tariffs other nations place on American goods. Investors are now uncertain due to the upcoming tariffs. Trump is expected to implement trade tariffs next month with a more focused and targeted approach.
The president will identify specific countries that contribute to the U.S. trade deficit. The administration is considering imposing tariffs on the “dirty 15,” which refers to about 15% of nations with ongoing trade imbalances. Likely targets include G-20 nations, China, Japan, Vietnam, and India.
Additionally, investors are assessing the status of the U.S.-mediated peace talks between Russia and Ukraine.If the peace negotiations are successful, more Russian oil may become available, which can cause higher selling pressure on crude.
A U.S. delegation will meet with Russian officials on Monday to continue the peace discussions. According to Reuters, the talks might address a potential ceasefire in the Black Sea with broader peace initiatives in Ukraine.
OPEC+, an alliance of oil-producing countries that includes Russia, announced that seven members will further reduce their oil production to make up for past overproduction.
A revised schedule states that these cuts range from 189,000 to 435,000 barrels per day.
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