By Enes Tunagur
LONDON (Reuters) -Oil prices held steady on Monday as concern over the impact of U.S. import tariffs on global economic growth and fuel demand, as well as rising output from OPEC+ producers, cooled investor appetite for riskier assets.
Brent crude was down 11 cents at $70.25 a barrel by 0856 GMT. U.S. West Texas Intermediate crude was at $66.87, down 17 cents on the day.
Last week marked WTI’s seventh consecutive weekly loss, the longest losing streak since November 2023, while Brent fell for a third consecutive week.
U.S. President Donald Trump’s protectionist policies have roiled markets across the world, imposing and then delaying tariffs on its biggest oil suppliers Canada and Mexico while also raising duties on Chinese goods. China and Canada have responded with tariffs of their own.
“Tariff uncertainty is a key driver behind the (oil price) weakness,” ING analysts said in a note, adding that oil price cuts from Saudi Arabia and deflationary signals from China also hurt sentiment.
Other factors weighing on oil include concerns about U.S. growth, the potential lifting of U.S. sanctions against Russia and output increases by the OPEC+ producer group, said IG analyst Tony Sycamore.
Oil rebounded from six-month lows on Friday after Trump said the U.S. would increase sanctions on Russia if it fails to reach a ceasefire deal with Ukraine.
The U.S. is also studying ways to ease sanctions on Russia’s energy sector if Russia agrees to end its war with Ukraine, two people familiar with the matter told Reuters.
Russia’s Deputy Prime Minister Alexander Novak on Friday said that OPEC+ could reverse the decision in the event of market imbalance.
Also on the supply front, Trump is seeking to choke off Iranian oil exports as part of efforts to pressure the country to rein in its nuclear programme. Iran’s Supreme Leader Ayatollah Ali Khamenei said on Saturday that his country will not be bullied into negotiations.
Later this week investors will assess monthly reports from the International Energy Agency and OPEC for demand and supply forecasts.
(Reporting by Enes Tunagur in London and Florence Tan in SingaporeEditing by David Goodman)
