05:25 AM EDT, 04/01/2025 (MT Newswires) -- Crude oil prices declined early on Tuesday on concerns a brewing trade war will limit economic growth and a supply hike by the Organization of the Petroleum Exporting Countries and allied producers will overload a saturated market.

Brent crude lost 0.4% to US$74.45/barrel and West Texas Intermediate crude fell 0.5% to US$71.16/b at last look.

U.S. threats of secondary tariffs on Russian and Iranian oil gave some support to oil prices, but the tariffs are expected to hit global demand and exacerbate fears the market will be oversupplied as OPEC+ ramps up production, Reuters said in a Tuesday report, citing analysts.

A Reuters poll of 49 economists and analysts in March projected that oil prices will remain subdued in 2025 due to U.S. tariffs and economic slowdowns in India and China, as well as increased supply from OPEC+. However, traders told Reuters that the president's warnings to Russia appeared to be a bluff, the report said.

"For now, it appears to be just a threat to Russia and Iran. However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries," Reuters quoted ING commodities strategists as saying.

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