Oil prices are set to record their first monthly decline since November. The decline is driven by concerns over global economic growth and weaker fuel demand. Moreover, U.S. tariff policies and signs of an economic slowdown are putting additional pressure on prices.
On Friday, Brent crude futures for May delivery slipped 0.4% to $73.26 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell 0.4% to $70.05 per barrel. Both benchmarks are on track for their first monthly decline in three months.
Several factors are contributing to this downward trend. Economic slowdown fears in the U.S. are dampening investor confidence. Additionally, tariffs imposed by the U.S. government are affecting market sentiment.
Furthermore, OPEC+ is considering increasing supply in April, which may lead to further price pressure. At the same time, hopes for peace in Ukraine have also played a role in weakening demand expectations. Despite these bearish factors, some analysts believe that WTI prices will remain supported between $65 and $70 per barrel.
Investor sentiment took a hit after U.S. President Donald Trump announced a 25% tariff on Mexican and Canadian goods, set to take effect on March 4. Additionally, a 10% duty will be imposed on Chinese imports. These measures are expected to impact global trade and oil demand.
Meanwhile, U.S. economic data has shown signs of weakness. Jobless claims rose more than expected last week, and reports confirmed a slowdown in fourth-quarter economic growth. These indicators suggest that energy demand could weaken in the coming months.
Despite the downward trend, oil prices gained more than 2% on Thursday due to renewed supply concerns. Trump revoked a license allowing Chevron to operate in Venezuela, potentially leading to disruptions in crude exports.
OPEC+ is currently debating whether to proceed with its planned supply increase in April or freeze output levels. Fresh U.S. sanctions on Venezuela, Iran, and Russia have complicated the global supply outlook, making it difficult for OPEC+ members to determine their next move.
Oil markets remain highly volatile as economic uncertainty continues to weigh on prices. While supply concerns could offer some support, weaker demand and trade policies are keeping investors cautious. Traders should stay informed and monitor market developments closely.
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Oil prices are set for their first monthly decline since November due to economic uncertainty, weaker demand, and U.S. tariffs.
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