Shares of oil and gas companies slipped by up to 3% during morning trade on March 5, as investors remained cautious following the implementation of trade tariffs and declining oil prices.
Oil prices fell by about 2% on Monday, March 4, hitting a 12-week low due to two main factors: concerns over OPEC+’s decision to increase oil output and the new US trade tariffs. Reuters reported that OPEC+—which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia—announced plans to proceed with an oil output increase in April. This increase, the first since 2022, sparked fears of an oversupply in the global oil market, which, combined with concerns about the potential negative impact of US tariffs, led to the drop in oil prices.
Brent crude futures fell by $1.19, or 1.6%, settling at $71.62 a barrel, while US West Texas Intermediate (WTI) crude dropped by $1.39, or 2.0%, to close at $68.37. These were the lowest closing prices for both benchmarks since December 2024.
Investors also reacted nervously to the ongoing trade tensions between the US and its North American neighbors. On Monday, US President Donald Trump announced that a 25% tariff on imports from Mexico and Canada would take effect immediately, heightening concerns about a potential trade war that could slow global economic growth and demand for oil.
