Oil market slipped on weak investor sentiment, heightened trade war threats
Investor concerns deepened following the US announcement confirming the 4 March implementation of tariffs on Canadian and Mexican imports, a move that threatens to disrupt crude supply chains from two of the US’s largest foreign oil suppliers.
International crude oil benchmarks ended February lower, pressured by a combination of bearish factors, including a strengthening US dollar, deteriorating investor sentiment, and escalating trade tensions.
Brent crude settled 86 cents lower at $73.18 per barrel.
WTI dropped 59 cents to close at $69.76 per barrel.
Both benchmarks recorded their sixth consecutive weekly decline amid persistent supply-demand uncertainty.
Investor concerns deepened following the US announcement confirming the 4 March implementation of tariffs on Canadian and Mexican imports, a move that threatens to disrupt crude supply chains from two of the US’s largest foreign oil suppliers. Additionally, Washington’s proposal to impose an extra 10% tariff on Chinese imports exacerbated fears of a widening global trade dispute.
Meanwhile, geopolitical uncertainty surrounding the US-Ukraine negotiations added to market volatility. The failure to secure a resolution to the ongoing Russia-Ukraine conflict has fuelled speculation over potential shifts in US sanctions policy, potentially paving the way for increased Russian crude exports.
Written by: Derek Yong