Economy News – Baghdad
In early trading on Friday, oil prices remained relatively stable but are poised to record the largest weekly decline since November, driven by the uncertainties surrounding U.S. tariff policies and their implications for economic growth as leading producers prepare to ramp up output.
As of 0217 GMT, Brent crude futures have risen by 13 cents, or 0.19 percent, reaching $69.59 per barrel, while U.S. West Texas Intermediate (WTI) crude has increased by eight cents, or 0.08 percent, to $66.44 per barrel.
Despite this uptick, Brent crude has seen a decline of 4.9 percent since the start of the week, marking its largest weekly dip since mid-October.
Similarly, West Texas crude is on track for a 4.8 percent decrease, also representing its largest weekly slump since that time period.
The oil markets have experienced significant volatility amid the shifting landscape of U.S. trade policy which continues to exert pressure on global trade dynamics.
On Thursday, President Donald Trump addressed the 25 percent tariffs imposed on a wide range of goods imported from Canada and Mexico, which will remain in place until April 2. Additionally, tariffs on steel and aluminum are set to take effect on March 12, as previously determined.
It is important to note that this amended tariff policy does not fully exempt Canadian energy products, which are subject to a separate tax of ten percent.
These tariffs are anticipated to hinder economic growth, ultimately dampening the demand for oil. The prevailing uncertainty surrounding trade policy also complicates investment decisions, casting a shadow over overall economic activity.
Brent prices plummeted on Wednesday to their lowest levels since December 2021, following an increase in U.S. crude inventories. This uptick in stock levels coincided with the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, within the OPEC+ coalition, to enhance production quotas.
The coalition confirmed a plan to escalate production in April by an additional 138,000 barrels per day.
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