Oil Prices Struggle Near Yearly Lows Amid Supply Concerns and Trade Tariffs

Oil prices remained subdued in Asian trade on Friday, hovering near their lowest levels this year as fears of increased U.S. trade tariffs rattled global markets. Brent crude futures for May edged up 0.2% to $69.60 a barrel, while WTI crude rose to $66.11 a barrel, stabilizing after hitting a three-year low.

Both Brent and WTI futures were on track for their worst weekly drop since October, with losses exceeding 4.5% for the week. Investor sentiment weakened after the U.S. imposed higher trade tariffs on major economies, including China, raising fears of slowed economic growth and reduced oil demand. In retaliation, China and Canada introduced countermeasures, with Mexico set to follow suit.

Adding to bearish pressures, OPEC+ voted to modestly increase oil production, signaling potential further hikes. Despite the move being limited, it hinted at a shift away from the cartel’s prior supply cuts, which had taken over 5 million barrels per day off the market to support prices.

Meanwhile, U.S. oil inventories rose more than expected, further weighing on crude prices. The market is now awaiting key U.S. economic data, particularly February’s nonfarm payrolls, for insights into potential demand trends.

Geopolitical risks offered little support, with the ongoing Russia-Ukraine war failing to significantly impact crude markets. The U.S. halted military aid to Ukraine, pending a new agreement with Kyiv.

Overall, oil markets remain under pressure from trade disputes, supply concerns, and demand uncertainty, setting crude up for continued volatility.