FX.co ★ Oil Set for Second Weekly Loss

WTI crude oil futures dipped below $60 per barrel on Friday, poised for a second consecutive weekly decline, as heightened US-China tensions clouded the demand outlook. On Thursday, the US announced that tariffs on Chinese imports had soared to 145%, with a new 125% levy added to a previous 20% duty. This development overshadowed President Trump's 90-day suspension of increased tariffs for most other countries, as the intensifying trade dispute may dampen fuel demand from China, the world's largest oil importer. Additionally, bearish sentiment was exacerbated by OPEC+'s decision to expedite output increases, raising concerns about potential oversupply. Meanwhile, the Trump administration implemented new sanctions targeting Iranian oil networks, including a storage terminal in China, just days before planned US-Iran discussions. Concurrently, the Keystone pipeline from Canada remains shut following a spill in North Dakota, with no confirmed timeline for its reopening, adding to the risks of supply disruption.