Oil prices moved little on Friday, hovering near their weakest levels for the year, and were also headed for steep weekly losses as fears of more U.S. trade tariffs battered markets. Concerns over increasing supply also dented oil prices this week, after the Organization of Petroleum Exporting Countries and allies (OPEC+) voted to increase production, albeit marginally. Data showing a bigger-than-expected build in U.S. oil inventories weighed on oil prices, especially as it came amid increasing fears of slowing fuel demand.
Brent oil futures expiring in May rose 0.2 percent to $69.60 a barrel, while West Texas Intermediate crude futures rose 0.2 percent to $66.11 a barrel by 21:06 ET (02:06 GMT). Brent steadied after sinking to its weakest level in over three years.
Oil prices head for worst week since October
Brent and WTI futures were set to lose between 4.5 percent and 5 percent for this week, marking at least their third consecutive week in the red. The two were also headed for their worst weekly drop since early October. Oil markets were battered by U.S. President Donald Trump imposing increased trade tariffs on several major economies, including top global oil importer China. The tariffs amplified concerns that disruptions in global trade will dent economic growth, in turn hurting oil demand.
China retaliated against the U.S. tariffs, as did Canada. Mexico is set to announce retaliatory measures on Sunday. The tariffs are also set to impact the U.S. and Canadian oil industry, although the U.S. made some exemptions for energy imports from Canada.
Focus this week is on more cues on the U.S. economy from nonfarm payrolls data for February, which is due later in the day.
Read more: Oil prices rebound after dropping below $70 amid trade, supply concerns
OPEC+ hike, Russia-Ukraine uncertainty weigh on oil
Oil prices were also pressured by OPEC+ sticking with a plan to begin increasing production this year, amid pressure from Trump to increase global energy production. While the OPEC+’s production hike this week was marginal, it heralds the coming of more potential increases in the coming months. The cartel had taken over 5 million barrels per day of production offline in the past two years to boost oil prices.
On the geopolitical front, a potential escalation in the Russia-Ukraine war did little to buoy crude. The U.S. was seen halting all defense aid for Ukraine earlier this week, as a tentative materials deal between Kyiv and Washington remained to be signed.
