Oil Set for Third Straight Weekly Decline Amid Tariff Concerns
Oil prices rose marginally in Asian trade on Friday but were on track for a third straight week of decline, hurt by U.S. President Donald Trump's renewed trade war on China and threats of tariff hikes on other countries.
Brent crude futures were up 52 cents at $74.81 a barrel by 0735 GMT, but were poised to fall 2.5% this week. U.S. West Texas Intermediate crude rose 44 cents to $71.05 a barrel, down about 2% on a weekly basis.
"Oil prices saw some stability return this morning following a volatile session overnight, as traders react to news of U.S. sanctions on Iranian crude exports to China," said Yeap Jun Rong, market strategist at IG.
The U.S. Treasury said on Thursday it was imposing new sanctions on a few individuals and tankers helping to ship millions of barrels of Iranian crude oil per year to China, in an incremental move to increase pressure on Tehran.
"Nevertheless, (today's) oil gains are limited, reflecting persistent concerns over supply and demand headwinds, including the potential for increased production from OPEC+ and the U.S., as well as tariff risks weighing on global oil demand," IG's Yeap added.
Trump had announced a 10% tariff on Chinese imports as part of a broad plan to improve the U.S. trade balance, but suspended plans to impose steep tariffs on Mexico and Canada.
Source : Reuters
