WASHINGTON (dpa-AFX) - Oil prices fell sharply to a near three-month low on Monday, weighed down by concerns about possible excess supply in the market after reports said OPEC and allies would go ahead with a plan of oil output increase in April.
Oil prices were also hurt by worries about global growth and outlook for oil demand due to new U.S. tariffs on Canada and Mexico set to come into force from Tuesday.
An additional 10% duty on Chinese goods will also take effect on Tuesday.
Worries about geopolitical tensions weighed as well on oil prices.
West Texas Intermediate Crude oil futures for March settled lower by $1.39 or nearly 2%, at $68.37 a barrel.
Brent crude futures closed down $1.19 or 1.63%, at $71.62 a barrel.
A report from Bloomberg said OPEC+ will gradually restart some halted crude output in April, adding 138,000 bpd to global supplies, and then gradually restore a total of 2.2 million bpd. The group had previously planned to restore 2.2 million bpd of output in monthly installments between January and late 2025.
On the tariff front, U.S. Commerce Secretary Howard Lutnick on Sunday said that the tariffs on Mexico and Canada will go into effect as scheduled on Tuesday, but President Donald Trump will determine their exact levels before implementation.
Lutnick also indicated that an additional 10 percent tariff on Chinese imports remains on the table for Tuesday. China has already vowed to counter with all necessary measures.
Following the collapse of a hoped-for deal between U.S. President Trump and Ukrainian President Volodymyr Zelenskyy, doubts have emerged over whether the U.S. will be able to broker a peace deal between Russia and Ukraine.
The European Union has now said that it is ready to work with all European partners and other allies on a peace plan to Ukraine that will ensure a just and lasting peace for Ukrainian people.
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