Oil Prices Steady in Asia, Markets Eye Trump Tariffs and OPEC+ Supply
World oil prices held steady in Asian trading on Friday, after posting sharp declines the previous day. Brent crude for September delivery rose 0.5% to $69.01 per barrel, while WTI rose 0.7% to $67.00 per barrel at 9:47 PM ET (1:47 AM GMT). Both benchmarks had fallen nearly 2% on Thursday, after hitting two-week highs earlier in the week.
Market pressure stems from a new escalation in President Donald Trump's tariff policies, who on Thursday announced a 35% tariff on Canadian imports starting August 1 and warned that the tariffs could increase if Canada retaliates. Trump has also imposed 25% tariffs on South Korea and Japan, and 50% on copper imports. Rising costs and disruptions to global trade resulting from tariffs have the potential to depress economic growth and reduce energy demand.
In addition to geopolitical factors, the market is also closely monitoring the supply outlook from OPEC+, which, according to a Bloomberg report, is considering pausing production increases after the last increase in August. OPEC+ previously planned to restore 2.2 million barrels of supply by the end of September, with a final increase of 550,000 barrels next month. The cartel also lowered its forecast for global oil demand over the next four years, citing the slowdown in the Chinese economy.
Analysts from ING stated that the oil market could face more sustained downward pressure starting in the fourth quarter of this year, as additional supply enters the global market. While the market remains relatively tight at the moment, the combination of global tariffs and slowing growth is expected to reduce industrial oil consumption and travel—two key drivers of demand.
Source: (ayu-newsmaker)
