- WTI edges lower amid worries that Trump’s trade tariffs would impact fuel demand.
- OPEC+ will proceed with oil output hikes from April, further weighing on Oil prices.
- Trump’s threat to impose more sanctions on Russia and a weaker USD lend support.
West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on Friday’s modest gains and attract fresh sellers at the start of a new week. The commodity currently trades just below mid-$66.00s, down nearly 0.60% for the day, and seems vulnerable to slide further.
Investors remain worried about the potential economic fallout from US President Donald Trump’s trade tariffs and their impact on fuel demand. Furthermore, the Organization of the Petroleum Exporting Countries and its allies – collectively known as OPEC+ – said it will proceed with oil output hikes from April. This, in turn, is seen as a key factor weighing on Crude Oil prices.
The downside for the black liquid, however, seems limited in the wake of Trump’s warning that the US would increase sanctions on Russia if the latter fails to reach a ceasefire with Ukraine. However, two people familiar with the matter told Reuters that the US is also studying ways to ease sanctions on Russia’s energy sector if the latter agrees to end its prolonged war with Ukraine.
Meanwhile, the weaker US jobs report released on Friday reaffirmed market bets that the Federal Reserve (Fed) remains on track to cut interest rates multiple times this year. This keeps the US Dollar (USD) depressed near its lowest level since November, which should act as a tailwind for USD-denominated commodities and contribute to limiting losses for Crude Oil prices.
