Oil prices rise slightly; face third straight weekly decline
Shafaq News/ Oil prices rosemarginally in Asian trade on Friday but were on track for a third straight weekof decline, hurt by U.S. President Donald Trump's renewed trade war on Chinaand threats of tariff hikes on other countries.
Brent crude futures rose 32 cents to$74.61 a barrel by 0500 GMT, but were poised to fall 2.8% this week. Meanwhile,U.S. West Texas Intermediate crude was up 24 cents at $70.85 a barrel, downabout 2.3% on a weekly basis.
"Oil prices saw some stabilityreturn this morning following a volatile session overnight, as traders react tonews of U.S. sanctions on Iranian crude exports to China," said Yeap JunRong, market strategist at IG.
The U.S. Treasury said on Thursdayit is imposing new sanctions on a few individuals and tankers helping to shipmillions of barrels of Iranian crude oil per year to China, in an incrementalmove to boost pressure on Tehran.
"Nevertheless, (today's) oilgains are limited, reflecting persistent concerns over supply and demandheadwinds, including the potential for increased production from OPEC+ and theUS, as well as tariff risks weighing on global oil demand," IG's Yeapadded.
Trump had announced a 10% tariff onChinese imports as part of a broad plan to improve the U.S. trade balance, butsuspended plans to impose steep tariffs on Mexico and Canada.
"Downside pressure has stemmedfrom the news flow around tariffs, with concerns over a potential trade warfuelling fears of weakening oil demand," analysts at BMI said in a note onFriday.
"This has eclipsed US PresidentTrump's February 4 executive order reimposing his maximum pressure campaign onIran, including a commitment to drive the country's oil exports down to zero,from above 1.5 million barrels per day currently," the BMI analysts said.
Oil prices settled lower on Thursdayafter Trump repeated a pledge to raise U.S. oil production, unnerving traders aday after the country reported a much bigger-than-anticipated jump in crudestockpiles.
The benchmarks were also underpressure from swelling U.S. crude inventories, which rose sharply last week asdemand softened on ongoing refinery maintenance.
(REUTERS)
