Global oil prices set for biggest weekly drop since October on supply worries, tariffs

Global oil prices moved in a narrow range on Friday but were on track for their biggest weekly drop since October after uncertainty over U.S. tariff policy raised concerns about demand growth at a time when major producers are preparing to boost output.

Brent crude futures were up 13 cents, or 0.19 percent, at $69.59 a barrel by 02:17 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 8 cents, or 0.08 percent, at $66.44 a barrel.

However, Brent crude has fallen 4.9 percent so far this week and is on track for its biggest weekly decline since Oct. 14. WTI is also set to fall 4.8 percent, also its biggest weekly decline since that period, according to Reuters.

Markets, including oil, have been rocked by volatile trade policy in the United States, the world’s largest oil consumer.

US President Donald Trump on Thursday suspended 25% tariffs on most goods from Canada and Mexico until April 2, while steel and aluminum tariffs will go into effect on March 12 as scheduled.

The revised order does not include all Canadian energy products, which are subject to a separate 10% tax.

The tariffs themselves are a drag on economic growth and thus on oil demand growth. The uncertainty over policy is slowing investment decisions, which also weighs on the economy.

Brent prices fell on Wednesday to their lowest levels since December 2021 after US crude inventories rose and following a decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to increase production quotas.

The alliance said it had decided to go ahead with a planned production increase in April, adding 138,000 barrels per day to the market.