Oil Holds Decline as Risk-Off Mood Sends Markets Into Tailspin

(Bloomberg) -- Oil steadied after a decline, tracking equity markets and risk assets on concerns tariffs and other measures will stunt growth in the world’s largest economy.

West Texas Intermediate traded around $66 a barrel after losing 1.5% on Monday, while Brent crude was near $69. Investors retreated from every type of risk on Monday with economic fear racing across markets as US President Donald Trump presses on with tariff measures and geopolitical shakeups, although the selloff moderated on Tuesday.

Oil has fallen almost a fifth from a high in mid-January as Trump’s chaotic rollout of tariff hikes and push to slash federal spending darken the economic outlook in the biggest producer and consumer of crude. Other bearish factors include OPEC+ plans to add supply and weakening demand in China, where Beijing told refiners to pivot away from making mainstay fuels like diesel and gasoline.

“External factors continue to push oil prices lower with lingering growth concerns driving a broader risk-off move,” said Warren Patterson, head of commodities strategy for ING Groep NV. “A clearly worsening sentiment across broader markets make it difficult to call a bottom.”

US Energy Secretary Chris Wright provided some bullishness, saying the Trump administration was prepared to enforce US sanctions on Iranian oil production. He spoke at the CERAWeek by S&P Global conference in Houston on Monday.

Executives from some of the world’s top oil and gas producers — including Chevron Corp., Shell Plc and Saudi Aramco — offered full-throated support for President Trump’s energy-dominance agenda at the gathering. Vitol Group Chief Executive Officer Russell Hardy said oil between $60 to $80 a barrel is a “reasonable” range for the next few years.

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