Oil prices set for third straight weekly fall on tariff concerns

Oil Prices Finish with Daily Gains, but Down for the Week

Oil prices finished with daily gains on Friday (Feb 7) after new sanctions were imposed on Iran’s crude exports, but prices were down for the week as investors worried about US President Donald Trump’s renewed trade war on China and threats of tariffs on other countries.

Market Reaction

Brent crude futures settled at US$74.66 a barrel, up US$0.37, or 0.5 per cent and poised to fall more than 2 per cent this week. US West Texas Intermediate (WTI) crude finished at US$71 a barrel, up US$0.39, or 0.6 per cent.

Reports of planned tariffs from the Trump administration reined in gains following the sanctions announced on Thursday, said John Kilduff, partner at Again Capital.

Expert Insights

“We’re just trying to make our way through the sanctions/non-sanctions, tariff talk from the White House,” Kilduff said.

WTI has been left close to US$70 a barrel, which seems to be the bottom of the trading range, Kilduff said.

“I don’t know if oil prices are low enough for the president, but we’ll see,” he said.

Trade War Concerns

Traders were watching statements by Trump throughout Friday for possible changes in US policies that could reshape the market quickly, said Phil Flynn, senior analyst at Price Futures Group.

“Trump giveth and Trump taketh away,” Flynn said.

Conclusion

Oil prices finished with daily gains on Friday, but concerns over the US-China trade war and potential tariffs on other countries led to a decline in prices for the week. The market is closely watching statements from the Trump administration and its impact on global trade and oil demand.

Frequently Asked Questions

Q: What were the daily gains in oil prices on Friday?

A: Brent crude futures settled at US$74.66 a barrel, up US$0.37, or 0.5 per cent, while US West Texas Intermediate (WTI) crude finished at US$71 a barrel, up US$0.39, or 0.6 per cent.

Q: What are the concerns driving the decline in oil prices?

A: Concerns over the US-China trade war and potential tariffs on other countries are driving the decline in oil prices, as investors worry about the impact on global trade and oil demand.

Q: What is the current trading range for WTI crude?

A: WTI crude has been left close to US$70 a barrel, which seems to be the bottom of the trading range, according to John Kilduff, partner at Again Capital.