Oil prices steadied close to their lowest closing levels this year, as growing tariff threats from U.S. President Donald Trump and ongoing supply disruptions dominated market sentiment. Brent crude remained below $73 a barrel following a 3% drop over the past two trading sessions, while West Texas Intermediate hovered near $69.
Trump’s continued threats of tariffs against Mexico and Canada—whose timing remains uncertain—further added to the market’s unease. The president also flagged the potential imposition of tariffs on the European Union, amplifying trade war fears.
As a result, crude is on track to post its largest monthly loss since September, driven by mounting concerns over the economic implications of escalating trade tensions. These fears have overshadowed potential bullish factors, such as the impact of tighter sanctions on Iran, which global traders, including Trafigura Group, identified as the biggest upside risk. The market is also watching for any delays from OPEC+ regarding the restart of production from shuttered wells.
In a related development, President Trump indicated plans to revoke Chevron Corp.’s license to operate in Venezuela, a move that could further hinder the country’s fragile recovery. Meanwhile, Iraq announced an agreement with Kurdistan to resume crude exports, though no specific timeline was provided.
On the geopolitical front, Ukraine’s President Volodymyr Zelenskiy is set to visit the U.S. on Friday, as the U.S. makes progress on negotiations aimed at ending the three-year war between Ukraine and Russia. A peace deal could lead to a loosening of sanctions on Russian oil exports, which would likely impact global supply.
“The potential for a peace deal between Ukraine and Russia continues to weigh on the market, as it could lead to an influx of Russian oil back into global markets,” noted Yeap Jun Rong, market strategist at IG Asia in Singapore. He added that softer U.S. economic data and persistent tariff uncertainties have done little to support oil prices in the short term.
Related topic:
What Is The Symbol For WTI Crude Oil Futures?
