Oil steadied after President Donald Trump escalated the trade war, with threats of 30% tariffs on goods from the European Union and Mexico hurting appetite for risk and the outlook for energy demand.

Global benchmark Brent was little changed above $70 a barrel, after gaining 3% last week, while West Texas Intermediate was above $68. US equity-index futures dropped after the latest tariff threats, which followed US trade measures against nations from Canada to Brazil and Algeria last week.

At the same time, investors were on alert for a "major statement" promised from Trump on Russia later Monday that may see him address the war in Ukraine and US sanctions policy. Ahead of that, the president told reporters in the US on Sunday that Washington would send Kyiv more weapons.

Oil futures remain more than 5% lower this year, with the market at a complicated juncture. Geopolitical tensions in the Middle East have eased following the Israel-Iran conflict, weighing on prices, and the US-led trade war is ratcheting up with the slew of fresh threats from Trump. Elsewhere, OPEC+ has been relaxing supply curbs at a rapid clip, reinforcing concerns about a crude glut, although delegates have said a pause may be in the offing.

Some market metrics suggest oil's near-term conditions remain supportive. Brent's prompt spread — the gap between its two nearest contracts — remains more than $1 a barrel in backwardation, a positive pattern.

Brent for September settlement advanced 0.1% to $70.43 a barrel at 8:16 a.m. in Singapore.

WTI for August delivery rose 0.06% to $68.49 a barrel.

Source : Bloomberg