Oil prices fell on Friday following tariff announcements by US President Donald Trump and plans by eight OPEC+ members to speed up production hikes and gradually end output cuts.
The international benchmark, Brent crude, decreased by around 0.90% trading at $69 per barrel at 10.53 a.m. local time (0753 GMT), down from $69.63 at the previous session’s close.
The US benchmark, West Texas Intermediate (WTI) fell by about 0.88%, settling at $65.74 per barrel, compared to its prior session close of $66.33.
The decline in oil prices has been driven by growing concerns over demand following Trump’s newly announced tariffs, as well as plans by eight OPEC+ members to accelerate production increases and phase out output cuts.
On April 2, Trump declared a ‘Liberation Day’ press conference, announcing a 10% universal tariff on all US imports, with significantly higher levies imposed on major trading partners, particularly China.
While imports of oil, natural gas, and refined petroleum products were exempt from the new tariffs, fears that the policies could stoke inflation, slow economic growth, and escalate trade disputes put pressure on prices.
In addition to the blanket 10% import tariff, an additional 54% levy on Chinese goods further heightened global recession fears. Experts warn that declining industrial output and weaker consumer spending could dampen oil demand.
Targeting China, the world’s largest importer, has rattled energy markets. Experts suggest the new tariffs could lead to a substantial drop in the country’s oil imports.
Adding to the downward pressure, the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) have decided to bring forward their plans to increase oil supply. The group revised its previously planned May production increase from 135,000 barrels per day to 411,000 barrels per day.
On April 3, eight OPEC+ members announced that production hikes would be accelerated. The decision, which includes Russia, came amid mounting consumer pressure and inflationary strains fueled by surging fuel prices.
