WTI falls to near $71.50 as China's tariffs on US imports dampen market sentiment

• WTI price depreciates amid rising fears following US-China trade war escalation.
• China slapped a 15% tariff on US coal and LNG imports, along with an additional 10% tariff on crude Oil.
• OPEC+ confirmed its plan to gradually increase Oil production starting in April.

West Texas Intermediate (WTI) crude Oil price continues to decline for the second consecutive day, trading near $71.50 per barrel during European hours on Tuesday. The downturn comes amid dampened market sentiment following China's announcement of new tariffs on US goods in retaliation to US President Donald Trump's trade measures, fueling concerns of a potential trade war between the world's two largest economies.

China's Commerce Ministry imposed a 15% tariff on US coal and liquefied natural gas (LNG) imports, along with an additional 10% levy on crude Oil, farm equipment, and certain automobiles, effective February 10. Additionally, China introduced export controls on key metals--including tungsten, tellurium, ruthenium, and molybdenum--citing national security concerns.

Market participants are closely monitoring trade negotiations. On Monday afternoon, President Trump stated he expected to speak with China within 24 hours, warning of "very, very substantial" tariffs if a deal is not reached. Meanwhile, he postponed planned tariffs on Canada and Mexico for a month after securing agreements to strengthen border security and combat drug smuggling.

In energy markets, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) reaffirmed its policy of gradually increasing Oil output from April and removed the US Energy Information Administration (EIA) from its list of monitoring sources. Since returning to office in January, Trump has urged OPEC to lower Oil prices, arguing that elevated prices are benefiting Russia amid its ongoing war in Ukraine.