Oil Declines Extend to Third Consecutive Week on Trade War Jitters
Oil prices fell for a third consecutive week as trade war concerns between the United States and China continued to weigh on markets. West Texas Intermediate (WTI) crude and Brent futures dropped over 2% after the US imposed tariffs on selected Chinese imports, prompting China to retaliate.
Demand Concerns Persist Amid Trade Tensions
"Ongoing trade tensions have raised fears of a global economic slowdown, potentially weakening oil demand," noted Dubai-based economist Hamza Zraimek. A canceled meeting between President Trump and Chinese leader Xi Jinping further dampened optimism for a swift resolution.
Trump's Tariff Threats Elevate Growth Fears
Adding to the bearish sentiment, President Trump announced plans to implement reciprocal tariffs on American imports, raising concerns over slowing economic growth and reduced demand.
Supply Concerns Outweighed by Tariff Threat
Despite supply restrictions from US sanctions on Iran, oil futures' rise was tempered by tariff concerns. WTI and Brent closed the week below $71 and $74 per barrel, respectively.
Ines Ferre, Yahoo Finance
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