Oil prices rebound slightly after week's steep decline
Oil prices are rising on Friday, but the entire week has marked the largest decline in listings since October. WTI and Brent have lost almost 5% due to market uncertainty caused by U.S. trade policy. Experts warn that the market is moving towards oversupply, causing investor panic.
Oil prices are rising on Friday; however, the whole week has shown the largest decline in listings since October. WTI for April delivery is increasing by 0.69%, reaching $66.82 per barrel, and Brent for May delivery is up by 0.69% to $69.94.
Despite this, the commodity has significantly lost value since the beginning of the week. Brent prices fell by 4.9%, and WTI by 4.8%—marking the biggest weekly losses since October of last year.
Analysts point to fluctuations in U.S. trade policy that are destabilizing commodity markets.
It looks like the financial markets are in full panic mode, no longer easily pacified by Trump’s one-month postponements and exemptions on import tariffs, says Vandana Hari, founder of Vanda Insights.
Trump's tariffs affect the market
U.S. President Donald Trump announced on Wednesday the suspension of tariffs on vehicles and automotive parts from Canada and Mexico for a month. However, these changes do not include Canadian energy products, which remain subject to a 10% tariff.
Experts warn that the risk of further oil price declines remains high. New supply from OPEC+ and producers outside the cartel could lead to oversupply, reports BMI, a research unit of Fitch Ratings.
All indications are that the oil market will remain under pressure, and investors must prepare for further volatility.
Tariffs aimed at Canada and Mexico were announced by the U.S. on Tuesday, March 4. The following day, tariffs on cars and other automotive products from Mexico and Canada were suspended for a month, and on Thursday, Trump announced the postponement of tariffs on goods and services from Mexico until April 2.
