West Texas Intermediate (WTI) crude oil prices edged lower on Friday, hovering around $69.90 per barrel during Asian trading hours, after posting gains in the previous session. Despite Thursday’s rally, crude remains on track for its first monthly decline since November, as fears of slowing global economic growth and weakening fuel demand outweigh supply concerns.
Investor sentiment dampened after US President Donald Trump announced new tariffs, including a 25% levy on Mexican and Canadian goods and a 10% duty on Canadian energy imports, effective March 4. The move comes alongside additional 10% tariffs on Chinese imports, heightening trade tensions.
Further pressure on oil prices followed the release of US economic data, which showed the country’s Gross Domestic Product (GDP) Annualized growth slowing to 2.3% in Q4 from 3.1% in the previous quarter—matching market expectations. Meanwhile, weekly jobless claims spiked by 22,000 to 242,000, the highest in over two months, signaling possible labor market softening. Investors now await the US Personal Consumption Expenditure (PCE) price index, the Federal Reserve’s preferred inflation gauge.
However, oil prices surged over 2% on Thursday after Trump revoked a license allowing Chevron to operate in Venezuela. The suspension could disrupt roughly 240,000 barrels per day—more than a quarter of Venezuela’s oil exports—potentially prompting new negotiations between Chevron and Venezuelan state oil company PDVSA to redirect crude shipments to non-US destinations.
Meanwhile, the OPEC+ alliance remains undecided on whether to proceed with its planned oil production increase in April or maintain current levels. The decision is complicated by fresh US sanctions on Venezuela, Iran, and Russia. The group is expected to finalize its supply strategy between March 5-7, though no consensus has been reached, according to Reuters sources.
