Baku: Oil prices fell in Asian trade on Tuesday as persistent uncertainty over U.S. trade tariffs dampened the economic outlook and sparked concerns over slowing demand. Brent oil futures for June dropped 0.4% to $65.63 a barrel, while West Texas Intermediate crude futures decreased 0.3% to $61.64 a barrel by 21:43 ET (01:43 GMT).

According to Azeri-Press News Agency, the oil market was also affected by Russia’s unexpected announcement of a three-day ceasefire with Ukraine. This development could pave the way for a broader agreement between the two nations. Additionally, oil traders are on edge ahead of an OPEC+ meeting next week, where the cartel is expected to increase production for a second consecutive month.

The trade war between the U.S. and China, two of the world’s largest oil consumers, is contributing to the economic uncertainty. The conflict has shown little sign of de-escalation, and U.S. President Donald Trump is reportedly preparing to impose more tariffs, potentially further dampening oil dem
and. Although a Wall Street Journal report suggested Trump may soften automotive tariffs, oil markets have found little solace in this news.

Russia’s announcement of a ceasefire with Ukraine from May 8 to May 10, in commemoration of the 80th anniversary of the Soviet Union’s victory over Nazi Germany, has also influenced oil prices. While the ceasefire offers hope for peace, Ukraine is advocating for a longer, 30-day ceasefire, and the U.S. is pushing for a permanent resolution. If tensions ease, there is potential for U.S. sanctions on Moscow’s oil industry to be lifted, which could increase global supply and further lower prices.