Oil prices eased on Friday, marking their first monthly decline since November, as concerns over global economic growth and reduced fuel demand—exacerbated by U.S. tariff threats and signs of an economic slowdown—outweighed supply worries.
May Brent crude futures, the most actively traded, fell by 31 cents (0.4%) to $73.26 per barrel by 0348 GMT, while U.S. West Texas Intermediate crude dropped 31 cents (0.4%) to $70.04 per barrel. The front-month Brent contract, expiring later on Friday, traded at $73.69, down 35 cents (0.5%). Both benchmarks are now on track for their first monthly drop in three months.
According to IG Market analyst Tony Sycamore, a mix of factors—including fears of a U.S. economic slowdown, tariff uncertainties, OPEC+ plans to boost supply in April, and hopes for peace in Ukraine—has dampened investor risk appetite and depressed prices. He added that technical charts support WTI prices between $65 and $70 per barrel, while noting that “the only counterargument is that prices have already fallen significantly.”
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U.S. President Donald Trump announced on Thursday that his proposed 25% tariffs on imports from Mexico and Canada will take effect on March 4, along with an additional 10% duty on Chinese imports. Economists at Fitch’s BMI research unit noted that market participants are struggling to assess the impact of the recent flurry of energy-related policy announcements, with U.S. tariff measures currently weighing on the market.
Investor sentiment was further affected by a higher-than-expected rise in U.S. jobless claims from the previous week, coupled with a government report confirming a slowdown in economic growth in the fourth quarter.
However, oil prices rebounded by more than 2% on Thursday when supply concerns reemerged after Trump revoked a license that had allowed U.S. oil major Chevron to operate in Venezuela. This cancellation may lead to a new agreement between Chevron and PDVSA, the state oil company of Venezuela, to export crude to markets outside the United States, according to sources.
Meanwhile, OPEC+ is currently debating whether to increase oil output in April as planned or to freeze production, as fresh U.S. sanctions on Venezuela, Iran, and Russia complicate the global supply picture, according to eight OPEC+ sources.
