Oil prices continued their decline on Tuesday, after United States President Donald Trump’s decision to pause all military assistance to Ukraine and as markets braced for U.S. tariffs on Canada, Mexico and China to take effect.
Brent crude futures experienced a decline of 54 cents, or 0.75 per cent, settling at $71.08 per barrel.
Similarly, U.S. West Texas Intermediate crude dropped by 36 cents, or 0.53per cent, to $68.01.
White House official confirmed on Monday that all U.S. military aid to Ukraine has been paused.
This decision followed a contentious meeting between former President Donald Trump and Ukrainian President Volodymyr Zelenskiy in the Oval Office last week.
The market’s interpretation of the growing distance between the White House and Ukraine as a potential easing of tensions reflects broader concerns about geopolitical risks and their impact on global oil supply.
However, Goldman Sachs analysts have observed that Russia’s oil production is more constrained by its OPEC+ production target of 9 million barrels per day than by existing sanctions.
The decision by OPEC+ to proceed with a planned oil output increase of 138,000 barrels per day—the first such move since 2022—is indeed exerting downward pressure on oil prices.
This increase in supply comes at a time when the market is already grappling with concerns about weakening global demand, contributing to the recent decline in prices
