Economy News – Baghdad
Oil prices experienced a decline for the third consecutive session on Wednesday, as investor confidence waned in response to major producers’ plans to ramp up production in April. Additionally, concerns regarding new American customs duties on imports from Canada, Mexico, and China raised fears of a slowdown in economic growth and demand.
As of 02:00 GMT, Brent crude futures dropped by 15 cents, settling at $70.89 per barrel. Meanwhile, West Texas Intermediate crude fell 40 cents, or 0.6 percent, to $67.86 per barrel.
On Monday, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC+, announced the first production increase since 2022.
This group plans to implement a modest production increase of 138,000 barrels per day starting in April, initiating a series of monthly increments aimed at reducing their current cuts of approximately 6 million barrels per day, which equates to about 6% of global demand.
On Tuesday, the U.S. introduced a 25% customs duty on all imports from Mexico and imposed a 10% duty on Canadian energy products. Furthermore, the customs duties on Chinese goods were doubled to 20%. The Trump administration has also maintained a 25% duty on all other Canadian imports.
Economists note that the trade war initiated by President Trump could lead to reduced job creation, sluggish economic growth, and increased prices, all of which may dampen consumer demand.
A slowdown in economic growth is expected to have a significant impact on fuel consumption in the world’s largest oil-consuming nation.
Retail prices in the United States are projected to rise in the upcoming weeks as the new customs duties affect the cost of energy imports, according to dealers and analysts.
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