Oil prices dipped following fresh developments on US trade tariffs and a production hike decision by the OPEC+ alliance.
International benchmark Brent crude fell by 0.3%, trading at $68.96 per barrel at 10 a.m. local time (0700 GMT), down from $69.18 at the previous session’s close.
Similarly, US benchmark West Texas Intermediate (WTI) decreased by about 0.4%, settling at $66.74 per barrel, compared to $67.04 in the prior session.
US President Donald Trump on Monday shared tariff letters on social media, targeting 14 countries with new customs duties. The letters revealed that starting August 1, all imports from Japan and South Korea will face an additional 25% tariff, beyond existing sectoral rates.
Trump also warned that goods rerouted through third countries to dodge tariffs would be hit with even higher rates. In cases of retaliation, he added, the 25% rate could rise further.
The letters listed new tariff levels, 25% for Malaysia, Kazakhstan, and Tunisia, 30% for South Africa and Bosnia-Herzegovina, 32% for Indonesia, 35% for Bangladesh and Serbia, 36% for Cambodia and Thailand and 40% for Laos and Myanmar.
Trump also signed a decree extending the tariff grace period, which was set to expire on July 9, until August 1.
Fears of steeper tariffs dampened global economic sentiment, pressuring oil demand expectations and weighing down prices.
Meanwhile, eight key members of OPEC+, including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, announced a joint decision to boost production by 548,000 barrels per day in August, compared to July levels.
These countries have been gradually easing their voluntary cuts of 2.2 million barrels per day since April. They previously raised output by 138,000 bpd in April, and by 411,000 bpd each in May, June, and July.
The move, adding to potential oversupply concerns, further supported the decline in prices.
By Humeyra Ayaz
