Oil prices fell more than 1.5% on April 21 as investors focused on concerns that the introduction of US tariffs on partner countries could create economic barriers and curb fuel demand growth. About this informs Reuters.
Brent crude futures were down $1.10, or 1.6 percent, at $66.86 a barrel as of 02:55 GMT, after rising 3.2 percent on Thursday. The price of US West Texas Intermediate (WTI) crude oil fell by $1.11 (1.7%) to $63.57 per barrel after a previous increase of 3.54%. Thursday was the last billing day last week due to Good Friday.
“The broader trend remains to the downside as investors may struggle to see improvement in supply and demand forecasts, especially amid the impact of tariffs on global growth and increased supply from OPEC+,” IG market strategist Yep Jun Rong noted.
It is expected that the OPEC+ alliance, which includes oil exporting countries and their allies, including Russia, will increase production by 411,000 barrels starting in May. barrels per day. At the same time, part of this growth may be offset by reductions in countries that have exceeded the established quotas. Oil prices also came under pressure as supply concerns eased after positive signals from the US-Iran nuclear talks on Saturday.
Iran’s foreign minister said that during the negotiations, the parties agreed to begin the development of a framework agreement. The American representative called the meetings “very good progress”.
It comes after the US last week imposed new sanctions on an independent Chinese refinery that was said to be processing Iranian crude, ratcheting up pressure on Tehran at the height of the talks.
Concerns about curbs on Iranian oil supplies and hopes for a US-EU trade deal helped push Brent and WTI prices up about 5% last week, their first weekly gain in three weeks. However, markets remain sensitive to the impact of aggressive US customs policy and escalating trade tensions with China. On Monday, the dollar and Asian stock indices fell.
Investors expect that the US customs policy will cause a significant slowdown in the country’s economy this year and next. The probability of a recession in the next 12 months is estimated to be close to 50%. The US remains the largest oil consumer in the world.
