Oil prices rebound slightly amid week of significant losses
Oil prices are rising on Friday, but this week has seen the largest decline in listings since October. WTI and Brent are losing almost 5% due to uncertainty in the markets caused by U.S. trade policy. Experts warn that the market is heading towards oversupply, and investors are panicking.
Oil prices are rising on Friday, but this week has seen the biggest 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.
However, since the beginning of the week, the commodity has significantly lost value. Brent prices fell by 4.9%, and WTI by 4.8%—the biggest weekly losses since last October.
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, the changes do not include Canadian energy products, which are still 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.
Everything indicates 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 next 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.
