Oil prices remained relatively stable on Friday but were on track for their most significant weekly drop since October, as ongoing uncertainties surrounding U.S. tariff policies raised concerns about demand growth, coinciding with plans by major producers to boost output.
As of 02:17 GMT, Brent crude futures rose 13 cents, or 0.19%, to $69.59 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 8 cents, or 0.08%, to $66.44 per barrel. Despite these small upticks, both benchmarks were poised for sharp weekly losses. Brent crude was down 4.9% for the week, marking its largest weekly decline since October 14. WTI, too, was set to fall by 4.8%, its steepest drop since the same week.
The oil market has been caught in a volatile wave driven by the U.S. tariff policies, the world’s largest oil consumer, which have created a ripple effect across commodities. On Thursday, President Donald Trump announced the suspension of a 25% tariff on most goods from Canada and Mexico until April 2, although tariffs on steel and aluminum will still take effect on March 12 as initially planned.
However, the revised tariff measures do not fully address Canadian energy products, which remain subject to a separate 10% tariff. The impact of these tariffs has been twofold: directly hampering economic growth and indirectly clouding the outlook for oil demand as business decisions slow amid policy uncertainty.
In addition to tariff concerns, oil prices were pressured earlier in the week as U.S. crude inventories showed an increase, and the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, announced plans to raise output. On Monday, OPEC+ confirmed it would move forward with a planned production increase in April, adding an additional 138,000 barrels per day to the global supply.
Oil prices hit their lowest levels since December 2021 on Wednesday as the market absorbed news of both rising U.S. stockpiles and the OPEC+ decision to ramp up production quotas.
Some relief for oil prices came from the U.S. government’s efforts to curb Iranian oil exports. Reports surfaced on Thursday suggesting that President Trump was contemplating a plan to inspect Iranian oil tankers at sea under an agreement focused on weapons of mass destruction. This action is part of the administration’s broader “maximum pressure” campaign aimed at driving Iranian oil exports to zero.
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