Oil Poised for Third Weekly Decline Amid Demand Concerns, Despite Iran Sanctions
Brent crude futures edged higher on Friday, but remained down over 2% for the week. Market concerns surrounding President Trump's tariffs on Chinese imports continue to outweigh the impact of his first round of sanctions against Iran.
The trade war between the US and China has sparked fears of hampered crude demand growth and a potential glut later in the year. Meanwhile, private refiners in Asia have reduced operating rates due to reduced Russian crude supply from US sanctions.
Additionally, weakness in European crude grades and depressed timespreads have further contributed to market uncertainty.
The Trump administration's sanctions on Iran have fallen short of the anticipated "maximum pressure" campaign, limiting their potential impact on supply disruptions.
Analysts at A/S Global Risk Management highlight that oil prices remain under pressure, supported by technical indicators suggesting potential oversold conditions.