Oil Prices Plunge as Trump’s Tariffs Fuel Fears of Slower Demand
Oil prices fell more than 1% on Friday, heading for their worst week in months, as U.S. President Donald Trump’s new tariffs sparked fears that a global trade war could hurt global oil demand. By 0532 GMT, Brent futures had fallen 76 cents to $69.38 per barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped 78 cents, or 0.5%, to $66.13.
The slump in oil prices followed Trump’s much-anticipated tariff announcement on Wednesday, which sent shockwaves through global markets. While crude prices took a hit, the broader financial impact was even more severe. Investors sought refuge in safe-haven assets like bonds, the Japanese yen, and gold, pushing the U.S. dollar index down to 102.98, its lowest level since mid-October.
Worst Week in Months for Brent and WTI
Both Brent and WTI are on course to record their largest weekly losses in percentage terms since October 14 and January 21, respectively. Analysts are closely monitoring longer-dated futures contracts, with BMI noting that the six-month and 12-month spreads had sharply contracted.
The trade tensions stemming from Trump’s tariffs have raised concerns that a potential trade war could weigh heavily on oil demand, further pressuring prices in the weeks ahead.
