Oil Set for Biggest Weekly Loss Since October on Tariff Chaos
Oil is on track for its biggest weekly decline since October as U.S. President Donald Trump’s on-and-off tariffs on major trading partners inject volatility and uncertainty into global markets.
West Texas Intermediate crude futures are trading near $66 a barrel, down 5% so far this week on concerns the levies will hurt demand. Brent closed below $70. Trump signed an order on Thursday to roll back some tariffs on Mexico and Canada through April 2, just days after they went into effect.
Trump’s trade policies and retaliatory actions from targeted countries including China have roiled markets, with U.S. crude heading for a seventh weekly decline, the longest losing streak since December 2023. OPEC+’s plan to start reviving idled production in April has added to the bearish drag. The early April timing of the tariffs coincides with the date when the president is expected to begin unveiling plans for so-called reciprocal duties on countries around the world. Canada has said it will not drop its retaliatory actions if the U.S. administration goes ahead with any levies.
Tankers carrying fuel from Canada destined for the U.S. began diverting to Europe before news of the delay, which sent Canadian heavy crude higher. The U.S. is a major consumer of oil from its northern neighbor.
Separately, Finance Minister Scott Bessent said the U.S. would not hesitate to impose “the full force” of sanctions on Russian energy if the move helped lead to a ceasefire in the Ukraine war. He made the remarks to an audience at the Economic Club of New York on Thursday. WTI for April delivery fell 0.3% to $66.14 a barrel at 8:35 a.m. in Singapore. Brent crude for May delivery settled up 0.2% at $69.46 a barrel on Thursday.
Source: Bloomberg
