Oil prices have been plunged this week, with Brent and WTI crude facing their most significant weekly declines since October. The combination of trade policy uncertainty in the U.S. and rising global supply has created strong bearish pressure on the market.
The uncertainty surrounding U.S. tariff policy has significantly affected oil demand expectations. On Thursday, U.S. President Donald Trump suspended the 25% tariffs on most goods from Canada and Mexico until April 2. However, steel and aluminum tariffs will take effect on March 12 as scheduled. These measures have led to increased concerns about economic growth, which directly impacts oil demand.
Market analysts believe that tariffs create obstacles for economic expansion, limiting industrial production and transportation needs. Moreover, the unpredictable nature of U.S. trade policy has slowed business decisions, affecting long-term investment in energy markets.
Brent crude futures rose slightly by 13 cents, reaching $69.59 per barrel, while U.S. West Texas Intermediate (WTI) crude futures edged up by 8 cents to $66.44 per barrel. Despite these marginal gains, Brent recorded a 4.9% weekly decline, while WTI dropped 4.8%, marking their worst weekly performance since October.
Oil markets have been under pressure due to the sudden shifts in trade policies from the U.S., the world’s largest oil consumer. As a result, investors remain cautious, anticipating further price swings in the coming weeks.
Another factor contributing to the sharp decline in oil prices is the decision by OPEC and its allies, known as OPEC+, to proceed with an April production increase. The group announced that they would add 138,000 barrels per day to global supply, which has further weakened market sentiment.
Additionally, U.S. crude inventories have risen, signaling an oversupply situation that has put downward pressure on prices. On Wednesday, Brent prices hit their lowest level since December 2021 due to these factors.
Some of the downward momentum in oil prices has been offset by reports that the U.S. government is considering new measures to halt Iranian oil exports. According to sources, Trump is evaluating a plan to inspect Iranian oil tankers at sea under an agreement related to weapons of mass destruction. This step is part of the administration’s "maximum pressure" strategy to reduce Iran’s oil exports to zero.
Despite this development, the overall market sentiment remains bearish. Investors continue to watch for further policy announcements that could impact global oil supply and demand.
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Oil prices have plunged significantly due to U.S. tariff uncertainty and rising supply. Brent & WTI had worst week since Oct.
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