Oil prices edged downward in early trading across Asia on Tuesday, as investors absorbed growing geopolitical tensions triggered by new U.S. trade tariffs alongside concerns about rising global oil output from the OPEC+ group.
By 01:40 GMT (21:40 ET Monday), September Brent crude futures dipped 0.7% to $69.11 per barrel, with West Texas Intermediate (WTI) futures falling by the same margin to $67.46. This decline followed a more than 1% rally on Monday, driven by expectations of continued supply constraints despite upcoming increases.
Trump Targets Key Trade Partners with Broad Tariff Warnings
President Donald Trump escalated his trade policies Monday by formally notifying 14 countries of impending tariff hikes effective August 1. Among those impacted were major Asian exporters like Japan and South Korea, facing a 25% tariff on all exports. Other countries, including Thailand, Serbia, and Tunisia, could see duties reach as high as 40%.
Trump’s executive order pushed back the original July 9 tariff deadline, providing more time for negotiations but maintaining August 1 as a largely firm cutoff. This uncertainty, especially involving major energy importers such as Japan, South Korea, and India, has fueled concerns about interruptions in global trade and a potential dampening of industrial demand.
OPEC+ Plans Larger Supply Increase as Cuts Ease
Attention remains fixed on OPEC+, which recently announced an output boost of 548,000 barrels per day for August—surpassing the 411,000 bpd monthly increases recorded in May, June, and July. The alliance also indicated a possibility of a similar adjustment in September, pending a review at its August 3 meeting.
This production rise continues the gradual rollback of the voluntary 2.2 million barrels per day supply cuts imposed earlier by major producers like Saudi Arabia and Russia, intended to support market stability.
Despite an initial price drop on Monday following the supply news, oil prices recovered after Saudi Arabia raised the official selling price (OSP) for its Arab Light crude to Asian customers for August delivery—a move interpreted as a sign of confidence in demand.