Oil prices extended losses on Friday, heading for their worst weekly decline in months, as U.S. President Donald Trump’s sweeping tariffs and OPEC+’s accelerated production increases deepened concerns over a global economic slowdown and oversupply.
Price Movements (as of 0157 GMT):
Brent Crude (LCOc1): Fell 0.4% to $69.83/barrel, on track for its steepest weekly drop since October 2023.
WTI Crude (CLc1): Dropped 0.5% to $66.63/barrel, poised for the largest weekly loss since January 2024.
Key Drivers:
Trump’s ‘Liberation Day’ Tariffs:
A 10% baseline tariff on all U.S. imports (excluding oil/gas) stoked fears of inflation, trade wars, and reduced energy demand.
Analysts warn tariffs could slow global growth, indirectly pressuring oil markets despite the energy exemption.
OPEC+ Output Surge:
The group agreed to boost production by 411,000 barrels per day (bpd) in May—triple the initial plan—accelerating the return of medium-sour crude and widening the Brent-Dubai spread.
ING analysts noted the move “brings forward the expected surplus,” with Brent-Dubai spreads already at unusual discounts.
Market Sentiment:
Bearish Outlook: Prices have slid steadily since Trump’s Wednesday announcement, reflecting trader anxiety over weaker demand and rising supply.
OPEC+ Policy Shift: The faster output increase signals confidence in market stability but risks exacerbating oversupply if demand falters.