FX.co ★ Oil Edges Lower Amid Supply Concerns and Economic Uncertainty

On Tuesday, West Texas Intermediate (WTI) crude oil futures experienced a slight decline of 0.1%, closing at $69 per barrel. Investors are currently evaluating the tightening global supply amidst prevailing economic uncertainties. The market response was measured following President Trump’s declaration of a 25% tariff on U.S. imports from countries importing Venezuelan oil. This move poses a risk of disrupting supply chains to major refiners in China, India, and Spain. Simultaneously, apprehensions about broader trade tensions and Trump’s rapid policy shifts continue to cast an economic shadow. On the supply front, OPEC+ is anticipated to increase production in May. Meanwhile, new U.S. sanctions on Iran coupled with Chevron's withdrawal from Venezuela might constrain supply further. Additionally, the potential for Russian oil exports, contingent on the outcomes of Ukraine-Russia ceasefire negotiations, along with the impending decision regarding U.S. tariffs, are contributing to investor anxiety.