Investing.com-- Oil prices fell in Asian trade on Tuesday amid persistent uncertainty over U.S. trade tariffs dampened the economic outlook and sparked persistent concerns over slowing demand.
Oil was also pressured by Russia unexpectedly announcing a three-day ceasefire with Ukraine, which could help pave a path towards a bigger agreement.
Brent oil futures for June fell 0.4% to $65.63 a barrel, while West Texas Intermediate crude futures fell 0.3% to $61.64 a barrel by 21:43 ET (01:43 GMT).
Oil markets were also skittish before an OPEC+ meeting next week, where the cartel is widely expected to increase production for a second consecutive month.
Tariff uncertainty, US-China trade war dent demand outlook
Oil was nursing steep losses so far in 2025, having recently slumped to a more-than four-year low on fears that increased global trade disruptions will undercut demand.
A bitter trade war between top oil consumers the U.S. and China showed little signs of deescalating, while U.S. President Donald Trump appeared to be preparing to roll out even more sweeping tariffs.
Oil markets took little relief from a Wall Street Journal report that Trump was planning to soften the blow of his steep automotive tariffs.
Fears of slowing demand, amid increased economic turmoil, have been a major weight on oil prices in recent months. Trump’s calls to increase U.S. energy production and bring down prices have also rattled crude markets.
Russia announces surprise 3-day ceasefire with Ukraine
Oil was also pressured by Russia announcing a surprise three-day ceasefire with Ukraine in early-May. The ceasefire will run between May 8 and May 10, as Moscow commemorates the 80th anniversary of the Soviet Union’s victory over Nazi Germany.
The ceasefire offered some hope that Russia still remained open to peace, as ongoing U.S.-brokered negotiations over a ceasefire appeared to be stalling.
Ukraine called for a longer, 30-day ceasefire, while Washington signaled that it wanted a permanent ceasefire between the two countries.
Easing Russia-Ukraine tensions could eventually result in the loosening of strict U.S. sanctions on Moscow’s oil industry, freeing up more global supply and further pressuring prices.