Oil prices fell for a third session on Wednesday as plans by major producers to raise output in April combined with concerns that U.S. tariffs on Canada, Mexico and China will slow economic growth and hit fuel demand.

Brent futures fell 24 cents, or 0.3%, to $70.80 a barrel at 0500 GMT. U.S. West Texas Intermediate (WTI) crude slipped 58 cents, or 0.9%, to $67.68 a barrel.

In the previous session, the contracts settled at close to multi-month lows.

"Unfavourable supply-demand dynamics have created a double whammy, with tariff uncertainties posing downside risks to global growth, and in turn, oil demand," said Yeap Jun Rong, market strategist at IG.

"OPEC+ remains on track to increase production in April, while optimism over a potential resolution to the Ukraine-Russia conflict raises the prospects of Russian supplies returning to the market," Yeap added.

The Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, decided on Monday to increase output for the first time since 2022.

The group will make a small increase of 138,000 barrels per day from April, the first step in planned monthly increases to unwind its nearly 6 million bpd of cuts, equal to nearly 6% of global demand.

A 25% tariff on all imports from Mexico, a 10% tariff on Canadian energy and a doubling of duties on Chinese goods to 20% came into effect on Tuesday. The Trump administration also imposed 25% tariffs on all other Canadian imports.
Source: Investing.com