Oil prices rose slightly in early Asian trade on Friday but were headed for a third consecutive week of decline. The price increase was driven by U.S. President Donald Trump’s renewed trade war with China and threats of tariff hikes on other countries.
Brent crude futures surged 15 cents to $74.44 per barrel, but are still expected to fall 3.2% this week, their largest drop since September 2024. West Texas Intermediate crude rose 9 cents to $71.70 per barrel, down 2.7% on a weekly basis.
The decline in oil prices has been fueled by concerns over a potential trade war and weakening demand, according to analysts at BMI. The news of Trump’s renewed tariffs on Chinese imports has heightened fears among traders.
This move reverses plans announced last month to impose steep tariffs on Mexico and Canada, but the impact on oil prices is already being felt. Oil prices dropped after Trump repeated his pledge to increase U.S. oil production, which unnerved traders who had been watching a large jump in crude stockpiles just a day earlier.
The ongoing decline in oil prices has seen Brent crude tumble over 8% since Trump took office in January, while West Texas Intermediate has fallen by over 7%.
Source: https://www.cnbc.com/2025/02/07/oil-set-for-third-straight-weekly-drop-on-tariff-fears.html