Oil markets in turmoil amid trade policy uncertainty
Oil prices are rising on Friday, but the entire week marks the largest decline in listings since October. WTI and Brent are losing almost 5% owing to uncertainty in the markets caused by US trade policy. Experts warn that the market is heading towards an oversupply, and investors are panicking.
Oil prices are rising on Friday, but the whole week marks 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.
However, since the beginning of the week, commodities have seen a significant loss in value. Brent prices fell by 4.9%, and WTI by 4.8%—the most considerable weekly decline since October last year.
Analysts point to fluctuations in US trade policy that destabilise 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
US 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 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.
Everything indicates that the oil market will remain under pressure, and investors must prepare for continued volatility.
Tariffs aimed at Canada and Mexico were announced by the US on Tuesday, 4 March. 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 2 April.
