Oil prices pared earlier losses to inch up during trade on Tuesday, despite concerns over a potential U.S. recession, the impact of tariffs on global growth and as OPEC+ sets its sight on ramping up supply.

Oil futures ended lower Monday, dragged down by fears rising global trade tensions could spark a recession or a slowdown as U.S. equities suffered their worst day of 2025.

Crude oil prices began the week with losses due to trade tensions from tariffs, Saudi Arabia's price cuts, and weak Chinese economic data, indicating concerns about demand and supply.

Oil prices were lower on Monday as concern over the impact of U.S. tariff uncertainty and rising output from OPEC+ producers pressured the commodity, while potential sanctions on Iranian oil exports kept prices from falling farther.

The international benchmark fell to its lowest point since 2021 after a decision by Saudi Arabia and other producers to pump more crude surprised the markets.

Oil prices fell for a second day in early trade on Tuesday on worries that U.S. tariffs on Canada, Mexico and China would slow economies around the world and hurt energy demand while OPEC+ ramps up its supply.