Oil prices were heading towards their lowest close since August 2021 on Friday, pressured by US President Donald Trump's new reciprocal tariffs, an unexpected output hike by key OPEC+ members, and China's retaliatory move to impose 34% tariffs on US goods.
The international benchmark Brent crude traded at $64.63 per barrel at 3.07 p.m. local time (1207 GMT), marking a decline of around 10.7% from last week's closing price of $72.38.
Similarly, the American benchmark West Texas Intermediate (WTI) was trading at $61.35 per barrel, down approximately 10.9% from last Friday's closing level of $68.85.
Prices initially moved upward earlier in the week after President Trump threatened sanctions on Russian oil buyers over ceasefire efforts in Ukraine and warned of unprecedented airstrikes on Iran if it refused to agree to a new nuclear deal.
However, both benchmarks fell on Tuesday amid concerns that escalating global trade tensions would dampen oil demand—especially following Trump's announcement of 25% tariffs on countries importing oil and gas from Venezuela.
Bearish sentiment intensified after US crude inventories rose more than expected. The American Petroleum Institute reported late Tuesday that US commercial crude stocks rose by 6.04 million barrels last week, defying expectations of a 4.6 million barrel draw.
Reinforcing this trend, the US Energy Information Administration on Wednesday confirmed a 6.2 million-barrel increase in crude inventories for the week ending March 28.
The downtrend continued through the week as markets reacted to the new round of US tariffs. The US administration's decision to impose at least a 10% tariff on imports from multiple major trading partners has sparked fears of a broader global trade war, potentially weighing on energy demand, global trade, and financial markets.
Adding to the pressure, on Thursday, eight OPEC+ members—Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—agreed to accelerate their output increase plan, approving a 411,000 barrels per day hike in May, equal to three months' worth of scheduled increases.
Prices plunged further on Friday after China announced it would impose an additional 34% tariff on all US goods starting April 10.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr