Oil Set for First Weekly Drop of Year as Trump Shakes Markets
Oil ended a volatile week with a decline after President Donald Trump raised the prospect of a trade war, demanding that OPEC+ lower crude prices but also saying he would prefer not to impose tariffs on China.
Brent erased earlier losses on Friday to trade slightly higher as Trump’s dovish remarks toward the Asian superpower pulled the dollar sharply lower, making commodities priced in the currency more attractive.
It was just the latest in a series of comments that have shaken oil prices since the new president took office on Monday. His first week in the White House began with threats of tariffs on Canada, Mexico and China, followed by a pledge that he would ask the OPEC+ producer group to “bring down the cost of oil.”
Futures in London were on track for a weekly decline of nearly 3% but remained higher for the year, after a strong start to 2025. Cold weather in the Northern Hemisphere and unprecedented U.S. sanctions on Russia have upended oil markets. Some of the strength in crude and freight markets that emerged after those sanctions have eased.
Source: Bloomberg
