Brent hits 6-month low on OPEC+ output increase, US tariffs, pause in Ukraine aid

Oil prices fell to multi-month lows on Tuesday after reports of OPEC+ plans to proceed with output increase in April while further price pressure was applied by U.S. tariffs on Canada, Mexico and China as well as Beijing's retaliatory tariffs.

Brent futures were down $1.50, or 2.1%, at $70.12 a barrel by 11:10 a.m. EST (1610 GMT). The session low was $69.75 a barrel, its lowest since September.

U.S. West Texas Intermediate (WTI) crude was off $1.19 a barrel, or 1.7%, at $67.18. The benchmark previously dropped to $66.77 a barrel, the lowest since November.

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

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

OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, decided on Monday to proceed with a planned April oil output increase of 138,000 barrels per day, its first since 2022.