Oil prices tumbled nearly 2% on Friday, capping off what looks to be their worst week in months, as fresh U.S. tariffs announced by President Donald Trump reignited fears of a global economic slowdown and weaker fuel demand.
Brent crude dropped $1.28 to $68.86 a barrel by 0703 GMT, while U.S. West Texas Intermediate (WTI) fell $1.29 to $65.66.
Brent is on pace for its steepest weekly loss since October, with WTI tracking its worst since January.
Markets reacted swiftly to Trump’s tariff announcement on Wednesday, sparking a rush to safe-haven assets like bonds, gold, and the Japanese yen. The dollar index slipped to 102.98, hitting its lowest level since mid-October.
“Longer-term futures contracts are starting to crack,” BMI analysts noted. “The hardest hit are Asian emerging markets — key drivers of global oil demand.”
Adding to the pressure, OPEC and its allies (OPEC+) announced plans to accelerate their output increase, with 411,000 barrels per day now set to return to the market in May — triple the originally planned hike.
“This moves up the timeline on an oil surplus,” analysts at ING said. “More supply, especially medium sour crude, means a wider Brent-Dubai spread — which has already been under unusual pressure this year.”
Although Trump’s tariffs exclude oil, gas, and refined product imports, analysts warn the broader impact could still weigh heavily on energy markets.
Rising inflation, slowing global growth, and deepening trade tensions are all expected to drag on demand.
