Oil set for worst week in months over Trump's new tariffs
April 4 (Reuters) - Oil prices fell further in early Asian trade on Friday, and were on track for the worst week in months over U.S. President Donald Trump's new tariffs, stoking concerns over a global trade war that could weigh on oil demand.
Brent futures fell 31 cents, or 0.4%, to $69.83 a barrel by 0157 GMT. U.S. West Texas Intermediate crude futures were down 32 cents, or 0.5%, to $66.63. Brent was on course for its biggest weekly loss in percentage terms since the week ended October 14, and WTI since the week ended January 21.
Adding to the bearish sentiment was a decision by the Organisation of Petroleum Exporting Countries and their allies (OPEC+) to advance their plan for oil output increases, with the organisation now aiming to return 411,000 barrels per day to the market in May, up from 135,000 bpd as initially planned.
"This brings forward the expected surplus that we see in the oil market this year. More OPEC+ supply should translate to more medium sour crude oil and a wider Brent-Dubai spread," analysts at ING said on Friday. "This spread has seen an unusual discount for much of the year."
Both benchmarks started plunging lower since Trump's news conference on Wednesday afternoon, which he called "Liberation Day" as he announced a 10% baseline tariff on all imports to the United States and higher duties on dozens of the country's biggest trading partners.
Imports of oil, gas and refined products were exempted from Trump's sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
38 minutes ago
- Daily Mail
Albo's chilling warning that Aussie military could be sent into the Middle East as Israel-Iran conflict explodes
Australia's military could be asked to play a role in the Middle East as regional tensions escalate. Iran and Israel have targeted each other with missile and air strikes after the latter launched its biggest-ever air offensive against its long-time foe. Prime Minister Anthony Albanese said his government was continuing to monitor the situation and urged Australians in the region to leave. Australia has not been drawn into the conflict, but Mr Albanese said the nation could be asked to participate in the future. 'It's obviously a very volatile situation,' he told reporters in Seattle on Saturday, local time. 'We expect there could be a request for Australia to play a military role.' The US was notified about the Israeli strikes in advance but Washington officials have been quick to point out it played no part in the attacks, warning Iran not to target its personnel or interests. Mr Albanese landed in the US on his way to the G7 summit in Canada on Sunday. He is expected to meet with a range of global leaders, including US president Donald Trump, who has been working with Iran on a nuclear deal. Tariff discussions are expected to take the spotlight but defence talks could also feature after the US urged Australia to increase defence spending to 3.5 per cent of GDP. Australia is already forecast to grow military spending to 2.3 per cent of GDP and Mr Albanese insisted his government would give 'whatever capability Australia needs to defend our national interest'.
South Wales Argus
an hour ago
- South Wales Argus
Canada is independent and sovereign, says Starmer ahead of visit
In an apparent challenge to the US President, the Prime Minister said the country was a 'much-valued member of the Commonwealth'. Sir Keir indicated the UK and Canada will seek to restart trade talks on his way to meet Mark Carney, the country's premier and former Bank of England governor, in the Canadian capital on Saturday. The visit will be the first by a British premier to the country in eight years and comes ahead of leaders from the world's major economies meeting for the G7 summit in Kananaskis next week. The Prime Minister will be walking a diplomatic tightrope between strengthening bilateral relations with Canada and keeping Mr Trump, with whom he is finalising details of a transatlantic trade deal, on side. The US President has repeatedly expressed a desire to make Canada the '51st state.' Asked whether he had called out Mr Trump's remarks about Canada, the Prime Minister said: 'Canada and the US are our allies. Canada is an independent, sovereign nation, and quite right, too. 'And that's the basis on which I've approached my discussions with all of our partners. I'm not going to get into the precise conversations I've had, but let me be absolutely clear: Canada is an independent, sovereign country and a much-valued member of the Commonwealth. 'And we work closely with Canada on any number of issues, whether that is defence and security – particularly the training in Ukraine, it's been something where Canada and the UK have worked very closely together.' He added: 'And one of the things I want to do is to open the door to taking out further, reducing out trade barriers with Canada. So, I'm really clear where we stand on that.' The UK and Canada have a trade relationship worth about £28 billion to the British economy and are both members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. But the two leaders have starkly different approaches to the US president. Mr Carney previously criticised the UK Government's invitation for Mr Trump to make a second state visit, telling Sky News earlier this year that Canadians were 'not impressed' by the gesture. Downing Street said Sir Keir would use his visit to Canada to argue that 'in a shifting global economy, the UK must retain its proud status as a free and open trading nation – strengthening our existing alliances while reducing barriers to trade with other countries around the world'. He is also expected to meet Mr Trump at the summit next week.
South Wales Guardian
an hour ago
- South Wales Guardian
Canada is independent and sovereign, says Starmer ahead of visit
In an apparent challenge to the US President, the Prime Minister said the country was a 'much-valued member of the Commonwealth'. Sir Keir indicated the UK and Canada will seek to restart trade talks on his way to meet Mark Carney, the country's premier and former Bank of England governor, in the Canadian capital on Saturday. The visit will be the first by a British premier to the country in eight years and comes ahead of leaders from the world's major economies meeting for the G7 summit in Kananaskis next week. The Prime Minister will be walking a diplomatic tightrope between strengthening bilateral relations with Canada and keeping Mr Trump, with whom he is finalising details of a transatlantic trade deal, on side. The US President has repeatedly expressed a desire to make Canada the '51st state.' Asked whether he had called out Mr Trump's remarks about Canada, the Prime Minister said: 'Canada and the US are our allies. Canada is an independent, sovereign nation, and quite right, too. 'And that's the basis on which I've approached my discussions with all of our partners. I'm not going to get into the precise conversations I've had, but let me be absolutely clear: Canada is an independent, sovereign country and a much-valued member of the Commonwealth. 'And we work closely with Canada on any number of issues, whether that is defence and security – particularly the training in Ukraine, it's been something where Canada and the UK have worked very closely together.' He added: 'And one of the things I want to do is to open the door to taking out further, reducing out trade barriers with Canada. So, I'm really clear where we stand on that.' The UK and Canada have a trade relationship worth about £28 billion to the British economy and are both members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. But the two leaders have starkly different approaches to the US president. Mr Carney previously criticised the UK Government's invitation for Mr Trump to make a second state visit, telling Sky News earlier this year that Canadians were 'not impressed' by the gesture. Downing Street said Sir Keir would use his visit to Canada to argue that 'in a shifting global economy, the UK must retain its proud status as a free and open trading nation – strengthening our existing alliances while reducing barriers to trade with other countries around the world'. He is also expected to meet Mr Trump at the summit next week.
