Oil Prices Fall for Third Consecutive Week Amid Tariff Concerns and Weak Demand
Oil prices posted their third straight weekly decline as market concerns grew over the impact of U.S. President Donald Trump’s tariffs on Chinese imports, raising fears of weakened global demand. Despite a slight recovery on Friday, with West Texas Intermediate (WTI) edging up 0.6% to settle at $71 per barrel, crude still closed the week down 2.1%.
The decline comes as Trump’s new tariffs, coupled with China’s planned countermeasures, heighten worries about a potential slowdown in global economic growth. Adding to the bearish sentiment, Chinese refiners have reduced operating rates to levels last seen at the start of the COVID-19 pandemic. This shift follows previous U.S. sanctions on Russia, which disrupted a key source of crude supply for China, further dampening demand.
“The market remains under pressure, but there are signs of support around current price levels,” said Arne Lohmann Rasmussen, Chief Analyst at A/S Global Risk Management. “However, the fear that U.S. tariffs could exacerbate the economic slowdown continues to weigh heavily on oil prices.”
Meanwhile, fresh U.S. sanctions on Iran have added limited pressure to the market, falling short of the "maximum pressure" campaign previously promised. The sanctions are not expected to cause significant disruptions to the current supply landscape.
Global markets are also adjusting to increased volatility. Earlier this week, tariffs targeting Canadian and Mexican crude imports—two of the largest sources of foreign oil for the U.S.—were delayed after initial announcements caused market jitters. In Europe, crude benchmarks have weakened, with processing plant shutdowns contributing to softer demand.
As oil markets continue to navigate these uncertainties, analysts are closely watching for signs of stabilization amid growing geopolitical and economic tensions.
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