Crude oil's recent climb ran out of steam Tuesday, retreating from five-week highs reached in the previous session, as the market braces for the Trump administration to unveil its tariff plans tomorrow, which the prevailing sentiment says likely will hurt global growth and demand.

"The market is getting a little jittery" ahead of the tariff announcement, Mizuho's Robert Yawger said. "We may lose some Mexican, Venezuela and Canadian supplies, but there is definitely a chance that demand destruction could outpace those barrels."

Analysts said the boost from President Trump’s comments about possibly sanctioning buyers of Russian oil was tempered by OPEC+ starting to unwind 2.2M bbl/day of production cuts over 18 months, with increases starting at an estimated 138K bbl/day this month, offset somewhat by pledges from some members to compensate for previous overproduction.

Goldman Sachs analysts said that while they believe Trump's warning of possible secondary tariffs on Russian crude are real, they note that Russia's exports to China and India are too large to be affected on a sustained basis.

Front-month Nymex crude (CL1:COM) for May delivery finished -0.4% to $71.20/bbl, front-month June Brent crude (CO1:COM) closed -0.4% to $74.49/bbl, the second loss in three sessions for both benchmarks, while U.S. natural gas (NG1:COM) turned back below $4 as a late-season cold spell forecast for the Midwest and East lost some of its bite, with the May front-month ending -4.1% at $3.951/mmBtu., snapping a four-session winning streak.

ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)

The Trump administration is expected to rescind a policy issued by former President Biden that requires liquefied natural gas projects to export within seven years of receiving regulatory approval.

The LNG industry had pushed Trump officials to rescind the 2023 policy statement on Department of Energy approvals for exports to big markets in Europe and Asia because several projects require more than seven years to complete.

A Trump official in the Office of Fossil Energy and Carbon Management said the Biden policy had made it unnecessarily difficult for projects to obtain and maintain an authorization to export LNG to non-free-trade-agreement countries.