Economy Update – Baghdad
Oil prices have recently stabilized at their lowest levels in six months, influenced by the wide-ranging tariffs initiated by President Donald Trump aimed at triggering trade wars across multiple sectors. These developments have raised significant concerns regarding the demand for energy.
West Texas Intermediate (WTI) crude was trading close to $67 per barrel, reflecting a drop of more than 5% over the last four trading sessions, while Brent crude ended the previous day below the $70 mark.
Despite Trump’s decision to delay certain tariffs on automobile manufacturers and consider exemptions for specific agricultural products, he remains committed to implementing reciprocal tariffs by April 2.
Since mid-January, oil prices have plummeted nearly one-fifth as a result of Trump’s trade policies, which have triggered turmoil in global markets. This has prompted retaliatory measures from nations such as Canada and China on American exports.
Additionally, the OPEC+ alliance has indicated its intention to resume production cuts in April, further intensifying the downward pressure on prices.
On the U.S. Gulf Coast, refineries have scaled back their requests for crude oil imports from Mexico, which is expected to announce its response to the tariffs on Sunday.
In Canada, the Alberta Prime Minister has stated that the province will pursue pipeline projects to increase oil exports to Asia and Europe.
In light of these unfolding events, analysts are reassessing their price forecasts. Morgan Stanley has adjusted its predictions for Brent crude prices downward for the remainder of the year, with expectations that trading will remain within a range of $60 during the latter half of the year.
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