Oil Prices Drop for Third Consecutive Week Amidst Trade War Concerns
Global oil markets experienced a third consecutive week of declines as the escalating trade conflict between the United States and China weighed heavily on sentiment.
West Texas Intermediate (WTI) and Brent futures both plunged over 2% for the week after the US imposed tariffs on select Chinese imports, prompting retaliation from Beijing.
"Crude oil futures have edged higher, but the overall trend remains bearish," said Dubai-based economist Hamza Zraimek. "Ongoing trade tensions between the US and China have stoked fears of a global economic slowdown, potentially dampening oil demand."
Optimism over a quick resolution to the trade dispute dissipated after a planned call between President Trump and Chinese leader Xi Jinping was canceled.
Separately, President Trump is reportedly considering imposing reciprocal tariffs on American imports as early as Friday, further exacerbating concerns about reduced economic growth and lower oil demand.
Despite recent US sanctions against Iran, the threat of tariffs has overshadowed supply concerns. While WTI gained marginally on Friday, it remains in negative territory for the year and Brent hovers just above its January levels.