Oil Prices Experience Significant Weekly Decline Amid Trade Tensions
Oil prices are poised to record their largest weekly decline since October, reflecting rising volatility and uncertainty in global markets triggered by customs duties imposed by U.S. President Donald Trump on major trading partners.
West Texas Intermediate (WTI) crude futures are currently trading near $66 per barrel, marking a 5% decrease so far this week. This downturn is largely attributed to concerns that these tariffs may dampen demand for crude oil. Meanwhile, Brent crude has settled below the $70 per barrel mark.
On Thursday, President Trump executed a series of executive orders aimed at reducing certain tariffs on imports from Mexico and Canada until April 2. This decision came just days after the tariffs were implemented, further complicating the trade landscape. Trump’s trade policies, coupled with retaliatory measures from targeted nations—most notably China—have led to considerable turmoil in the markets.
American crude is on track for its seventh consecutive weekly decline, the longest streak since December 2023. Additionally, the OPEC+ coalition’s plan to gradually revive restrained production starting in April is contributing to the prevailing bearish sentiment.
The schedule for tariff announcements coincides with early April, a period in which the President is expected to outline strategies regarding tariffs affecting various countries worldwide. Canada has indicated it will not back down from retaliatory measures if the U.S. administration maintains current tariffs.
In response to these trade tensions, Canadian fuel suppliers have begun rerouting shipments intended for the U.S. to Europe, a development that has led to rising prices for Canadian crude oil. The U.S. remains a critical consumer of oil from its northern neighbor.
In related news, U.S. Treasury Secretary Scott Besent emphasized that the United States will not hesitate to intensify sanctions on the Russian energy sector if such actions contribute to achieving a ceasefire in the ongoing conflict in Ukraine. His remarks were made during a speech at the Economic Club in New York on Thursday.
