Oil prices decline as tariff fallout and weak demand weigh on market
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Crude oil prices started the week lower as traders reacted to the latest tariff policies from the Trump administration, raising concerns over weaker economic growth and reduced demand for oil. At the time of writing, Brent crude traded at $69.97 per barrel, while West Texas Intermediate (WTI) stood at $66.64 per barrel, extending a prolonged downturn. Brent has now recorded three consecutive weekly declines, while WTI has fallen for seven straight weeks, marking its longest losing streak in years.
The bearish sentiment deepened after Saudi Arabia announced a broad price cut on crude exports, the first in three months, reversing a price hike implemented earlier amid sanctions on Russian oil under the Biden administration. ING analysts Warren Patterson and Ewa Manthey highlighted growing concerns over OPEC+ supply increases at a time of heightened uncertainty in global demand.
Adding to the pressure, China’s oil imports declined over the first two months of 2025, reflecting deflationary pressures and weak consumer demand. February’s consumer price index (CPI) slipped below zero for the first time in 13 months, a trend that could weigh further on energy consumption.
Meanwhile, IG analyst Tony Sycamore pointed to additional factors dragging oil prices lower, including expectations of the U.S. easing sanctions on Russia and higher OPEC+ production forecasts. However, Sycamore noted that technical support between $65 and $62 per barrel could hold, setting up a potential rebound toward $72 in the coming weeks.
With demand uncertainty in China, ongoing U.S. trade tensions, and OPEC+ production adjustments, traders will be closely watching upcoming inventory data and geopolitical developments to gauge the next price direction.
The bearish sentiment deepened after Saudi Arabia announced a broad price cut on crude exports, the first in three months, reversing a price hike implemented earlier amid sanctions on Russian oil under the Biden administration. ING analysts Warren Patterson and Ewa Manthey highlighted growing concerns over OPEC+ supply increases at a time of heightened uncertainty in global demand.
Adding to the pressure, China’s oil imports declined over the first two months of 2025, reflecting deflationary pressures and weak consumer demand. February’s consumer price index (CPI) slipped below zero for the first time in 13 months, a trend that could weigh further on energy consumption.
Meanwhile, IG analyst Tony Sycamore pointed to additional factors dragging oil prices lower, including expectations of the U.S. easing sanctions on Russia and higher OPEC+ production forecasts. However, Sycamore noted that technical support between $65 and $62 per barrel could hold, setting up a potential rebound toward $72 in the coming weeks.
With demand uncertainty in China, ongoing U.S. trade tensions, and OPEC+ production adjustments, traders will be closely watching upcoming inventory data and geopolitical developments to gauge the next price direction.