Oil prices steadied on Wednesday after hitting multi-month lows in the previous session, though they remained under pressure amid plans by major producers to raise output in April and concerns over U.S. tariffs on Canada, Mexico, and China.
Brent futures inched 6 cents up, or 0.1%, to $71.10 a barrel at 0730 GMT. U.S. West Texas Intermediate (WTI) crude dipped 24 cents, or 0.4%, to $68.02 a barrel, News.Az reports, citing Reuters.
In the previous session, the contracts settled at close to multi-month lows, weighed by concerns that the U.S. tariffs and counter-tariffs by the affected countries will slow economic growth and reduce fuel demand.
The Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, decided on Monday to increase output for the first time since 2022.
The group will make a small increase of 138,000 barrels per day from April, the first step in planned monthly increases to unwind its nearly 6 million bpd of cuts, equal to nearly 6% of global demand.
A 25% tariff on all imports from Mexico, a 10% tariff on Canadian energy and a doubling of duties on Chinese goods to 20% came into effect on Tuesday. The Trump administration also imposed 25% tariffs on all other Canadian imports.
U.S. President Donald Trump's self-declared trade war is seen by economists as a recipe for fewer jobs, slower growth, and higher prices, which could kill demand. The lower economic growth will likely impact fuel consumption in the world's biggest oil consumer.
The Trump administration also said on Tuesday it was ending a license that the U.S. has granted to U.S. oil producer Chevron (CVX.N), opens new tab since 2022 to operate in Venezuela and export its oil.
Meanwhile, U.S. crude stocks fell by 1.46 million barrels in the week ended February 28, market sources said, citing American Petroleum Institute figures on Tuesday. Investors now await government data on U.S. stockpiles, due on Wednesday.
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