Oil prices continued their downward trend on Friday, heading toward their first monthly loss since November, as mounting worries over global economic growth and weakening fuel demand weighed on the market. A combination of geopolitical uncertainties, Washington’s tariff moves, and signs of a slowing U.S. economy overshadowed any supply risks.
Brent crude futures for May delivery dipped 31 cents, or 0.4%, to $73.26 per barrel by 01:33 GMT, while U.S. West Texas Intermediate (WTI) crude slipped 30 cents, or 0.4%, to $70.05 per barrel. With the front-month Brent contract set to expire later in the day, both oil benchmarks are on track for their first monthly drop in three months.
Investor sentiment has been rattled by multiple factors, including economic slowdown fears in the U.S., fresh tariff announcements, and OPEC+ deliberations on a possible production increase in April. Hopes for diplomatic progress in the Ukraine conflict have also played a role in tempering bullish price expectations, according to IG market analyst Tony Sycamore.
“The only argument in favor of stability is that prices have already corrected significantly,” Sycamore noted, highlighting that WTI still holds technical support between $65 and $70 per barrel.
Adding to market pressure, U.S. President Donald Trump reaffirmed on Thursday that his administration’s proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4. Additionally, a 10% duty on Chinese imports is set to be imposed, stoking fears of trade disruptions that could dampen economic growth and energy demand.
Economic indicators further fueled concerns, with U.S. jobless claims surpassing expectations last week and fresh government data confirming that economic expansion slowed in the fourth quarter.
However, oil prices found temporary relief on Thursday, rising over 2% after Trump revoked a license that had previously allowed Chevron to operate in Venezuela. The decision heightened supply concerns and could force Chevron into negotiations with Venezuelan state oil company PDVSA to redirect crude shipments to alternative destinations, according to sources familiar with the matter.
Meanwhile, OPEC+ remains divided over whether to proceed with a scheduled oil output hike in April or maintain current production levels. The decision has been complicated by fresh U.S. sanctions on Venezuela, Iran, and Russia, which have added new layers of uncertainty to the global supply outlook, according to insights from eight OPEC+ sources.