Crude oil prices are trading on declines for the second consecutive session in the middle of today’s trading session, Tuesday, March 4, at its lowest level since December of last year after OPEC decided to move forward with its plan to reduce production, in addition to the rise in tensions from the trade war and customs tariffs between the largest exporters and importers of crude oil in the world, as Brent crude is falling by about 1.50% and is trading at levels of $70.55 per barrel, while US Nymex crude is trading at a decline of 1.27% at levels of $67.50 per barrel.

OPEC and its independent allies outside the organization, led by Russia, in the so-called OPEC+ alliance decided yesterday, Monday, to proceed with the plan to increase production by 138,000 barrels in April, as previously planned, in an increase that is the first of its kind since 2022.

Donald Trump confirmed yesterday, Monday, that the tariffs imposed by the United States of America on Canada and Mexico will come into effect today, Tuesday, after they were scheduled for the beginning of February and were postponed for a month. He also added that he will impose additional tariffs of 10% on Chinese goods, so China responded this morning and announced tariffs of up to 15% on some American goods, which raised the state of tension in the markets and increased the state of uncertainty, thus putting additional pressure on crude prices, as expectations indicate the impact of this war on economic activity and demand for energy.