- WTI remains under selling pressure around $67.70 in Tuesday’s early European session.
- OPEC+ said it will proceed with a plan to increase oil production from April.
- US tariff threats and peace talks on Russia-Ukraine also weigh on the WTI price.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.70 during the early European session on Tuesday. The WTI price edges lower to near a 12-week low on reports that OPEC+ will proceed with a planned oil output increase in April.
The Organization of the Petroleum Exporting Countries and allies (OPEC+) said it will proceed with a plan to increase oil production from April. This increase follows a series of output cuts made by OPEC+ to stabilize the market.
Additionally, the possible peace talks on the Russia-Ukraine and US tariff threats might contribute to the WTI’s downside. Trump confirmed on Monday that tariffs on Canada and Mexico would go into effect on Tuesday. The measures of Trump had previously reaffirmed the new March date after having initially set it for April.
“Crude oil is under siege on multiple fronts and is vulnerable to the latest bearish headline or economic data,” said Bob Yawger, director of energy futures at Mizuho.
On the other hand, the weaker-than-expected US economic data might drag the Greenback lower and help limit the USD-denominated commodity’s losses. The US ISM Manufacturing Purchasing Managers’ Index (PMI) came in below the market consensus, falling to 50.3 in February from 50.9 in January.
