FX.co ★ Oil Holds Losses

WTI crude oil futures lingered around $69 per barrel on Friday, maintaining a decline of over 1% from the previous day, as the market assessed the economic repercussions of US tariffs and their potential impact on global energy demand. Investor attention shifted to President Trump’s introduction of a new series of predominantly higher tariffs on US trading partners, scheduled to take effect later in the day. The executive order enacts duties ranging from 10% to 41% on imports from various countries and regions, including Canada, India, and Taiwan, which did not meet his trade agreement deadlines. Analysts cautioned that these tariffs could decelerate economic growth by increasing prices, thereby diminishing oil demand. Nonetheless, oil is poised for a robust weekly increase exceeding 6%, marking its strongest performance since early June. Prices continue to be buoyed by supply risks following Trump’s threat to impose 100% secondary tariffs on purchasers of Russian crude and a warning to China—a significant oil consumer—of severe penalties should it persist in buying Russian oil.