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Oil to have worst week for months due to Trump's new tariffs

Oil prices continued to fall in early Asian trading on Friday. They were on course for their worst week in several months due to U.S. president Donald Trump's tariffs. This stoked concerns about a possible global trade war, which could impact oil demand.

Brent futures were down 31 cents or 0.4% to $69.83 per barrel at 0157 GMT. U.S. West Texas Intermediate Crude Futures fell 32 cents or 0.5% to $66.63.

Brent is on track to suffer its largest weekly percentage loss since the week ending October 14 and WTI since January 21.

The Organisation of Petroleum Exporting Countries (OPEC+), which is a group of oil-producing countries and their allies, has decided to move forward with their plan to increase the amount of oil produced. They now aim to return 411, 000 barrels per day in May instead of the 135,000 bpd originally planned.

This brings forward the surplus we expect to see on the oil market in this year. Analysts at ING stated on Friday that more OPEC+ production should lead to a greater medium sour crude and a larger Brent-Dubai differential. This spread has been at a discount unusual for most of the year.

Since Trump's Wednesday afternoon news conference, which he called 'Liberation Day' as he announced an initial 10% tariff on all imported goods to the United States along with higher duties for dozens of its biggest trading partners, both benchmarks have started falling.

The new tariffs on imports of refined products, oil and gas were not applied to these products. However, the policy could increase inflation, slow down economic growth, and intensify trade conflicts, which would impact oil prices. Reporting by Sudarshan Varadhan. Gerry Doyle edited the story.

(source: Reuters)