BERNAMA – Oil prices fell yesterday following tariff announcements by United States (US) President Donald Trump and plans by eight OPEC+ members to speed up production hikes and gradually end output cuts, reported Anadolu Ajansi (AA).
International benchmark Brent crude fell by around 0.9 per cent, trading at USD69 per barrel at 0753GMT, down from USD69.63 at the previous session’s close.
US benchmark West Texas Intermediate (WTI) fell about 0.88 per cent, settling at USD65.74 per barrel, compared to its prior session close of USD66.33.
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.
Trump announced a 10-per-cent 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 per cent import tariff, an additional 54 per cent levy on Chinese goods further heightened global recession fears.
Experts warned 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, OPEC and its OPEC+ allies 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 Thursday, eight OPEC+ members announced that production hikes would be accelerated. The decision came amid mounting consumer pressure and inflationary strains fuelled by surging fuel prices.
