Oil down on OPEC+ output increase

Oil prices extended losses on Tuesday after reports of OPEC+ plans to proceed with output increase in April while further price pressure was applied by US tariffs on Canada, Mexico and China as well as Beijing's retaliatory tariffs.

Brent futures were down $1.04, or 1.45%, at $70.58 a barrel by 1417 GMT while US West Texas Intermediate (WTI) crude was off 73 cents, or 1.07%, at $67.64.

Brent was trading near a five-month low.

"The current downward trend in oil prices is primarily driven by OPEC+'s decision to increase output and the introduction of US tariffs," said Darren Lim, commodities strategist at Phillip Nova.

He said another factor was President Donald Trump's decision to pause all US military aid to Ukraine after his Oval Office clash with President Volodymyr Zelenskiy last week.

OPEC+ decided on Monday to proceed with a planned April oil output increase of 138,000 barrels per day, the group's first since 2022. The move took the market by surprise, said Bjarne Schieldrop, chief commodities analyst at SEB.