Oil Prices Decline Amidst Trade War Concerns
Oil prices are set to decline for a third consecutive week as the trade war between the United States and China continues to weigh on markets. West Texas Intermediate (WTI) crude and Brent futures are poised to end the week down roughly 2% following the implementation of US tariffs on Chinese imports and China's subsequent retaliation.
Economist Hamza Zraimek notes that the ongoing trade tensions have raised concerns about a global economic slowdown, potentially weakening oil demand. The cancellation of a planned call between President Trump and Chinese leader Xi Jinping has further dampened optimism over a quick resolution.
Despite the threat of tariffs, supply concerns have been overshadowed. On Friday, oil futures rallied after the announcement of sanctions against oil producer Iran, with WTI rising above $71 per barrel and Brent trading near $75.
Ines Ferre, a senior business reporter for Yahoo Finance, highlights that WTI has erased its year-to-date gains, while Brent remains slightly higher since January.