Oil Prices Set for Weekly Decline Amid Uncertainty Over US Tariff Threats
Crude oil prices remain steady but are on course for weekly declines as markets await US tariff decisions on Canada and Mexico.
Oil prices were largely stable on Friday, but on track for weekly declines as market participants awaited a decision from US President Donald Trump regarding potential tariffs on Mexico and Canada.
By 5:20 p.m. Saudi time, Brent crude futures for March were down by 9 cents, reaching $76.78 a barrel, while US West Texas Intermediate crude fell by 2 cents to $72.71. For the week, both the Brent and WTI benchmarks were set to decline by 2.2 percent and 2.6 percent, respectively.
The pressure on oil prices was attributed to concerns about the economic impact of the proposed tariffs, which Trump threatened to impose on Canada, Mexico, and China.
Analysts pointed to the potential for a stronger US dollar due to the tariffs, which also weighed on oil.
Trump has proposed a 25 percent tariff on Canadian and Mexican exports if those countries do not address issues such as fentanyl shipments and illegal migration.
Canada and Mexico are among the largest crude oil exporters to the United States, but it remains uncertain whether oil would be included in the tariffs.
Trump stated that a decision would be made soon about whether Canadian and Mexican oil imports would be exempt.
Energy analysts, such as Livia Gallarati from Energy Aspects, noted that tariffs could lead to significant cuts in US refinery operations, although a grace period for negotiations could be included, and oil might eventually be excluded from the tariffs.
The market is also anticipating the upcoming OPEC+ meeting on Monday, where the group is expected to discuss how to respond to US plans to increase domestic oil production.
Kazakhstan's energy minister indicated that OPEC might consider increasing production to avoid upsetting the US, with a potential announcement of gradual cuts in production limits, starting as early as the second half of the year.
By 5:20 p.m. Saudi time, Brent crude futures for March were down by 9 cents, reaching $76.78 a barrel, while US West Texas Intermediate crude fell by 2 cents to $72.71. For the week, both the Brent and WTI benchmarks were set to decline by 2.2 percent and 2.6 percent, respectively.
The pressure on oil prices was attributed to concerns about the economic impact of the proposed tariffs, which Trump threatened to impose on Canada, Mexico, and China.
Analysts pointed to the potential for a stronger US dollar due to the tariffs, which also weighed on oil.
Trump has proposed a 25 percent tariff on Canadian and Mexican exports if those countries do not address issues such as fentanyl shipments and illegal migration.
Canada and Mexico are among the largest crude oil exporters to the United States, but it remains uncertain whether oil would be included in the tariffs.
Trump stated that a decision would be made soon about whether Canadian and Mexican oil imports would be exempt.
Energy analysts, such as Livia Gallarati from Energy Aspects, noted that tariffs could lead to significant cuts in US refinery operations, although a grace period for negotiations could be included, and oil might eventually be excluded from the tariffs.
The market is also anticipating the upcoming OPEC+ meeting on Monday, where the group is expected to discuss how to respond to US plans to increase domestic oil production.
Kazakhstan's energy minister indicated that OPEC might consider increasing production to avoid upsetting the US, with a potential announcement of gradual cuts in production limits, starting as early as the second half of the year.
