Oil prices experienced a decline on Monday, attributed to concerns regarding the potential impact of US import tariffs on global economic growth and fuel demand, coupled with increasing output from OPEC+ nations, dampening investor appetite for riskier assets.

Brent crude dropped by 31 cents, or 0.4 percent, to $70.05 per barrel by 7:45 a.m. Saudi time, following a prior settlement that showed a gain of 90 cents on Friday.

Meanwhile, US West Texas Intermediate (WTI) crude stood at $66.69 per barrel, down 35 cents, or 0.5 percent, after a 68-cent increase in the previous trading session.

WTI has experienced a decline for seven consecutive weeks, marking the longest losing streak since November 2023, while Brent has also been down for three weeks in a row.

This downturn follows recent actions by US President Donald Trump, who imposed then delayed tariffs on key oil suppliers Canada and Mexico, alongside increased taxes on Chinese imports.

In retaliation, China has imposed tariffs on agricultural products from the US and Canada.

Analysts from ING noted that “tariff uncertainty is a key driver behind the weakness,” emphasizing that reductions in oil prices by Saudi Arabia and deflationary signals from China further contributed to the negative sentiment surrounding oil markets.

Tony Sycamore, an analyst at IG, indicated that additional factors influencing oil prices include concerns about potential US economic growth, the possibility of lifting sanctions on Russia, and OPEC+ decisions to increase output.

Despite the current negative momentum, Sycamore mentioned that much of the adverse news may already be accounted for, with expectations for support levels around $65 to $62 per barrel before anticipating a recovery back to $72.00 for WTI prices.

Oil prices rebounded slightly on Friday following President Trump's announcement that the US would intensify sanctions on Russia should the country fail to achieve a ceasefire with Ukraine.

Reports indicate that the US is exploring options to ease sanctions on Russia’s energy sector if agreements are reached towards ending the conflict with Ukraine.

The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, confirmed that they would proceed with planned oil output increases starting in April.

Alexander Novak, Russia’s Deputy Prime Minister, stated that OPEC+ could reconsider this decision should market imbalances arise.

In a move highlighting supply concerns, Saudi Arabia has reduced prices for crude grades sold to Asia for the first time in three months in April.

Last week, President Trump expressed a desire to negotiate a deal with Iran, an OPEC member, to prevent the country from pursuing nuclear weapons, despite Iran’s assertions that it is not seeking such capabilities.

Under a “maximum pressure” campaign against Iran, the US previously rescinded a waiver allowing Iraq to pay Iran for electricity, as confirmed by a State Department spokesperson.

Iran’s Supreme Leader Ayatollah Ali Khamenei countered the US stance on Saturday, asserting that the country would not be coerced into negotiations.