ISTANBUL
Oil prices edged lower on Friday but maintained at nearly one-month highs on Friday amid tightening global supply concerns following US tariffs on Venezuelan oil buyers and restrictions on Iranian crude trade.
The international benchmark, Brent crude, decreased by around 0.5% trading at $72.93 per barrel at 10.56 a.m. local time (0756 GMT), down from $73.31 at the previous session’s close.
The US benchmark, West Texas Intermediate (WTI) fell by about 0.5%, settling at $69.41 per barrel, compared to its prior session close of $69.76.
Oil prices fell on concerns that US President Donald Trump’s economic and trade policies could accelerate inflation in the country and negatively impact the US Federal Reserve’s (Fed) decision to cut interest rates.
Experts predict that the Fed’s suspension of interest rate cuts could reduce oil demand and push prices downward.
Prices near one-month high
Meanwhile, prices neared one-month highs over tightening supply concerns.
Markets reacted to the upcoming April 2 start of Trump’s proposed 25% tariff on Venezuelan oil and gas imports. Venezuela’s economy heavily relies on oil exports, with China as its primary buyer.
The US sanctions on Iran also support expectations of a tightening global oil supply.
Last week, the US Treasury Department imposed sanctions on 19 entities and vessels tied to Iran’s oil exports, while the US State Department sanctioned a Chinese oil terminal for buying and storing Iranian crude from a sanctioned vessel.
Trump also announced a 25% tariff on all imported automobiles and spare parts.
The White House’s Fact Sheet stated that the 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans), light trucks, and key automobile parts (engines, transmissions, powertrain parts, and electrical components), and also noted that additional parts could be subject to tariffs if necessary.
Trump also threatened the EU and China with “large scale” tariffs if they work together to economically harm the US.
“If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” he said on Truth Social platform.
OPEC plans output cuts to combat excess supply
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, issued a new schedule for seven member countries to make further production cuts to compensate for previous overproductions.
This move is expected to offset the impact of the group’s planned monthly production increases set to begin in April.
“Rising supplies, particularly from outside the OPEC+ alliance would likely keep a lid on prices,” said Daniel Hynes, a senior commodity strategist at the Australia and New Zealand Banking Group, in a note.
Meanwhile, the second round of US-Russia talks on the Ukraine conflict may take place in the Saudi capital Riyadh in mid-April, Russia’s state-run TASS news agency reported.
Technical consultations will continue, though the next meeting is still being arranged, it said.
The first round was held on March 24 in Riyadh, where the sides discussed reviving the Black Sea grain deal.
