Tariff Tensions Drive Oil Gains
Crude oil prices rose on Friday, fueled by concerns over U.S. President Donald Trump’s tariff threats on Canadian and Mexican exports. Brent crude futures for March increased by $0.61 to $77.48 per barrel, while WTI crude climbed $0.65 to $73.38.
Despite this rise, both benchmarks are set for weekly declines, with Brent down 1.3% and WTI losing 1.69%. However, January’s performance remains robust, with Brent gaining 3.8% and WTI up 2.3%.
Geopolitical Pressures and Strategic Decisions
The possibility of crude oil being included in the tariffs adds to the market’s unease. Coupled with sanctions on major producers like Russia and Venezuela, these developments are reshaping the global energy landscape.
“The geopolitical and policy-driven risks have created volatility in oil markets,” said Daniel Hynes of ANZ Bank.
OPEC+ and Market Dynamics
The Feb. 3 OPEC+ meeting is expected to address production adjustments, as global supply tightens under U.S. sanctions. Additionally, the Federal Reserve’s cautious stance on interest rates reflects broader economic concerns, further influencing market dynamics.
