Crude oil prices recouped some of the losses they booked on Thursday today but looked set to end the week with little change, amid tariff worries, OPEC+’s decision to boost supply, and a threat of a diesel shortage in key markets, and the prospect of fresh U.S. sanctions on Russian energy.
At the time of writing, Brent crude was trading at $69.16 per barrel, with West Texas Intermediate at $67.16 per barrel, both slightly up from opening, after they shed about 2% on Thursday, pressured by the latest tariff announcements from the White House.
Earlier this week, President Trump declared he would impose a 50% tariff on imports from Brazil, saying President Lula da Silva’s government was mistreating former president Jair Bolsonaro, who is on trial on allegations of a coup against Lula da Silva.
In a social media post, Trump said the tariffs were imposed in response “in part to Brazil’s insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans.”
Lula da Silva has threatened reciprocal measures in response to the tariffs, after earlier in the week he referred to Trump as an “emperor” that the world does not need. The reference came in response to a media question about Trump’s threat to impose additional tariffs on all BRICS members if they engaged in what he called anti-American policies.
On Thursday, Trump deepened tariff anxiety on markets by announcing a 35% tariff on imports from Canada, starting from next month. He added that the rest of the United States’ trade partners would be hit with blanket tariffs of between 15% and 20%.
Meanwhile, OPEC revised down its oil demand forecast for next year, now seeing the total at 106.3 million bpd, down from 108 million barrels daily forecast earlier. The group attributed the revision to slowing demand growth in China.
Meanwhile, the European Union, which is in the process of preparing yet another sanction package against Russia, is discussing the option of a “floating” price cap for Russian crude in light of volatile oil prices.
By Irina Slav for Oilprice.com
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