Oil prices stable as US tariff and Ukraine uncertainty dominates sentiment

Oil prices were little changed on Monday, buoyed by positive economic news from China but pressured by the possible negative impact of U.S. tariffs with traders still concerned about the Russia-Ukraine war.

Brent futures fell 10 cents, or 0.1%, to $72.71 a barrel by 11:49 a.m. EST (1649 GMT). U.S. West Texas Intermediate (WTI) crude fell 20 cents, or 0.3%, to $69.56.

In other U.S. energy markets, the start of the April contract as the new front-month cut U.S. diesel futures down to a nine-week low toward the end of winter heating season. Gasoline futures soared to a six-month high ahead of summer driving season.

On Sunday, U.S. Commerce Secretary Howard Lutnick said levies on Canada and Mexico would take effect on Tuesday but President Donald Trump will determine whether to stick with the planned 25% level.

"Tariffs might dent economic and oil demand growth, but they also curtail oil supply when directed towards oil producers, such as Canada and Mexico," said PVM analyst Tamas Varga.

Canada's oilfield drilling and services sector was showing signs of slowing ahead of threatened tariffs.

Mexico's President Claudia Sheinbaum said that whatever Washington decided, her country was ready.

China, the No. 2 economy after the U.S., said it was preparing countermeasures to tariffs targeting U.S. agriculture.

In early trading, crude prices drew support from data showing manufacturing activity in February expanded at the fastest pace in three months. But, recent reports of softening U.S. consumer demand spurred fears of a slowdown.