09:13 AM EST, 02/24/2025 (MT Newswires) -- Oil prices edged down early on Monday, trading at a two-month low on rising supply amid uncertainty over the global economy as the United States threatens to upend global trade flows with tariff.

West Texas Intermediate crude for April delivery was last seen down US$0.15 to US$70.25 per barrel, the lowest since Dec.26, while April Brent crude fell US$0.03 to US$74.40.

The drop comes as a winter rally eases with moderating temperatures, lowering demand. At the same time, U.S President Donald Trump continues to unsettle markets after imposing a 10% tariff on imports from China while also promising additional levies on imports of steel and aluminum as well on trade with U.S. allies.

"The mood among crude oil traders has, in the past few days, shifted back to one of caution, with the focus now squarely on Washington and the increased uncertainty caused by a wave of Trump announcements following his inauguration. Not least among these is the prospect of tariffs threatening to erupt into a global trade war, which may lead to lower growth and, with that, lower demand for energy," Ole Hansen, head of commodity strategy at Saxo Bank, noted

Milder temperatures are also easing demand, as a polar vortex that brought bitter cold as far south as Texas retreats, while OPEC+ is expected to boost supply as it sticks with a plan to begin returning 2.2 million barrels per day of production cuts to market with monthly increases of 122,000 barrels per day beginning in April.