Global oil prices fell in European trade on Friday, resuming losses and about to hit 11-week lows, and on track for the heftiest monthly loss since September 2024 amid mounting concerns about Trump’s tariffs and their impact on the global economy.
Prices are also pressured as Iraq prepares to resume crude exports from Kurdistan, which overshadowed a surprise drop in US crude stocks last week.
Prices
US crude fell 1.1% today to $69.2 a barrel, with a session-high at $70.145.
Brent fell 0.9% to $72.61 a barrel, with a session-high at $73.41.
On Thursday, US crude rose 1.9%, while Brent added 1.5%, marking the first profit in three days away from 11-week lows.
Oil prices also rose back then after fresh US sanctions on the Venezuelan oil industry, while US crude stocks fell unexpectedly.
Monthly Trades
Global oil prices are down 5.5% on average in February, on track for the first monthly loss in three months, and the heftiest since September.
Trump’s Tariffs
As Trump prepares to impose tariffs on Mexico and Canada, while threatening the EU and other countries with additional tariffs, inflationary concerns are mounting on the Federal Reserve, with interest rates likely remaining at current levels for an extended duration.
Trump’s tariffs could impact global growth according to economic analysts, which would weaken demand on oil.
Iraqi Supplies
Baghdad will soon announce a resumption of crude exports from the semi-autonomous Kurdistan region through the Turkish pipeline according to an official statement.
Iraq will export 185 thousand bpd through the line, with the amount increasing gradually.
Also Reuters reports that OPEC+ is considering an oil production hike in April as it continues to assess the status of global supplies with ongoing US sanctions on Venezuela, Iran, and Russia.
US Stocks
The Energy Information Administration reported a drawdown of 2.3 million barrels in US crude stocks to 430.2 million barrels, while analysts expected a build of 1.7 million barrels.
Gasoline stocks rose 0.4 million barrels to 248.3 million barrels, while distillate stocks rose 3.9 million barrels to 120.5 million barrels.
