Oil prices declined due to concerns about global economic growth, fuel demand, and tariff threats from the United States. This leads to the first monthly drop in prices since November.
This was reported by Reuters , UNN and UNN.
Futures for Brent crude for May delivery lost 59 cents (0.8%) and by 07:47 GMT were trading at $72.98 per barrel. West Texas Intermediate (WTI) futures fell 65 cents (0.9%) to $69.70 per barrel.
The Brent contract with the nearest expiration date, which ends on Friday, fell by 62 cents (0.8%) to trade at $73.42. Prices for both major crudes are set to fall for the first time in three months.
Several factors are putting pressure on the market: an expected slowdown in the US economy, threats of tariffs, OPEC+ plans to increase production in April, and the possibility of a peace deal in Ukraine that could make more Russian oil available.
The only counterargument is that prices have already fallen significantly
On February 27, US President Donald Trump announced that his proposed 25% tariffs on Mexican and Canadian goods would go into effect on March 4, along with an additional 10% tariff on Chinese imports.
Analysts at Fitch BMI noted that market participants are trying to assess the impact of all the Trump administration's energy initiatives announced this month.
Currently, the market is dominated by factors that put pressure on the market, in particular, US duties
Additional pressure on investor sentiment came from data showing that the number of applications for unemployment benefits in the US increased more than expected last week. At the same time, another government report confirmed that economic growth in the US slowed in the fourth quarter.
Nevertheless, on Thursday, February 27, oil prices rose by more than 2% due to supply concerns after Trump canceled the license of the American oil company Chevron to operate in Venezuela.
According to sources close to the negotiations, this decision could lead to a new agreement between Chevron and Venezuelan state-owned PDVSA to export oil to countries other than the United States.
Meanwhile, OPEC+ is considering whether to increase production in April as planned or freeze it, as the coalition member countries are trying to assess the situation on the global market, eight sources in the cartel said.
Recall
Bitcoin has lost 21% of its peak on January 20, and the total market capitalization has decreased by almost $1 trillion. Other cryptocurrencies, including Ethereum, have lost even more.
