Oil set for worst week in months over Trump's new tariffs
Shafaq News/ Oil prices fell further in early Asian trade onFriday, and were on track for the worst week in months over U.S. PresidentDonald Trump's new tariffs, stoking concerns over a global trade war that couldweigh on oil demand.
Brent futures fell 31 cents, or 0.4%, to $69.83 a barrel by 0157GMT. U.S. West Texas Intermediate crude futures were down 32 cents, or 0.5%, to$66.63. Brent was on course for its biggest weekly loss in percentage termssince the week ended October 14, and WTI since the week ended January 21.
Adding to the bearish sentiment was a decision by the Organisationof Petroleum Exporting Countries and their allies (OPEC+) to advance their planfor oil output increases, with the organisation now aiming to return 411,000barrels per day to the market in May, up from 135,000 bpd as initially planned.
"This brings forward the expected surplus that we see in theoil market this year. More OPEC+ supply should translate to more medium sourcrude oil and a wider Brent-Dubai spread," analysts at ING said on Friday."This spread has seen an unusual discount for much of the year."
Both benchmarks started plunging lower since Trump's newsconference on Wednesday afternoon, which he called "Liberation Day"as he announced a 10% baseline tariff on all imports to the United States andhigher duties on dozens of the country's biggest trading partners.
Imports of oil, gas and refined products were exempted from Trump'ssweeping new tariffs, but the policies could stoke inflation, slow economicgrowth and intensify trade disputes, weighing on oil prices.
(REUTERS)
