FX.co ★ Brent Holds Losses

Brent crude oil futures hovered just under $72 per barrel on Friday, maintaining a decline of over 1% from the previous day. This movement was influenced by market concerns over the economic repercussions of U.S. tariffs and their potential impact on global energy demand. Investor attention shifted to President Trump's announcement of a new series of higher tariffs against U.S. trading partners, effective later today. The executive order enacts duties ranging from 10% to 41% on imports from numerous countries and regions, such as Canada, India, and Taiwan, that did not meet his trade agreement deadline. Analysts have cautioned that these tariffs might slow economic growth by increasing prices, which could consequently reduce oil demand. However, oil is on course for a robust weekly gain of over 6%, marking its best performance since early June. Prices are further bolstered by supply concerns, following Trump's threat to impose 100% secondary tariffs on purchasers of Russian oil, with additional warnings to China—a major oil consumer—about severe penalties if it persists in buying Russian crude.