Oil prices went down on Monday, even after U.S. President Donald Trump warned of possible high tariffs on countries buying oil from Russia and Iran. The prices of two major oil benchmarks, Brent and WTI, both fell slightly. Brent crude dropped by 30 cents (0.4%) to $72.46 per barrel, while WTI crude declined by 33 cents (0.5%) to $69.03 per barrel.
Trump made strong statements on Sunday, expressing frustration with Russian President Vladimir Putin. He warned that countries buying Russian oil could face tariffs of 25%-50% if Russia does not cooperate in resolving the Ukraine conflict. He also threatened Iran with bombings and tariffs if they refuse to negotiate on their nuclear program.
Despite these warnings, oil prices still fell. Experts say this could mean that markets are not taking Trump’s threats seriously, or they fear that tariffs could lead to a bigger trade war, which might slow down global economic growth and reduce oil demand.
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Adding to the price drop, the OPEC+ group, which includes major oil producers like Russia, plans to increase oil production starting in April and likely continuing into May. This extra supply is putting further pressure on prices. Meanwhile, Saudi Arabia is expected to lower the price of its oil for Asian buyers in May, making it the cheapest in three months. Iran has also cut its oil prices for Asia to stay competitive.
For now, oil markets are reacting to both Trump’s threats and the growing oil supply. Analysts say if the tariffs actually happen, they could change global oil trade, but for now, the market remains doubtful. With Brent’s front-month contract expiring soon, traders are expecting more price fluctuations in the coming days.
