Brent crude rose to $70.5 per barrel on Friday, attempting to recover from recent declines after Russia's Deputy Prime Minister Novak suggested that OPEC+ could reconsider its planned output increase after April if market imbalances continue.
Oil prices set for over 3% weekly decline
Despite this rebound, Brent was still on track for a 3.1% weekly decline, weighed down by concerns that escalating trade tensions could dampen global energy demand and expectations of increased supply from major oil producers. While President Trump eased some tariffs on Mexico and Canada until April 2, Canada’s retaliatory tariffs remain in place, and China’s countermeasures are set to take effect next week. Meanwhile, OPEC+ plans to raise output in April, alongside the potential restart of the Kirkuk-Ceyhan pipeline and rising production at Kazakhstan’s Tengiz field, all of which have fueled concerns about oversupply. Additionally, the possibility of US sanctions on Russia being lifted has emerged, as President Putin signaled interest in negotiating a peace deal for Ukraine.
WTI rebounds on Friday but remains weak
WTI crude also rebounded to $67.3 per barrel on Friday, trying to recover from recent losses, after Novak’s comments on potential adjustments to OPEC+ production plans if market conditions remain unstable. However, WTI is still on track for a 3.3% weekly drop, pressured by the uncertainty surrounding U.S. tariff policies and expectations of higher output from major oil producers. As with Brent, the easing of some tariffs on Mexico and Canada, while Canada’s retaliatory tariffs remain, and China’s countermeasures are due to take effect next week, continue to create market uncertainty.
OPEC+ planned output increase hit prices
Additionally, the planned output increase from OPEC+ and the potential restart of the Kirkuk-Ceyhan pipeline, coupled with rising production at Kazakhstan’s Tengiz field, are contributing to oversupply concerns. Furthermore, the prospect of the US lifting sanctions on Russia, following President Putin’s interest in a peace deal, has added another layer of complexity to the market outlook.
