Oil prices fell during Asian trade on Friday, poised for their first monthly decline since November as global economic uncertainty and trade tensions dampened demand outlooks.
By 3:30 pm AEDT (4:30 am GMT) Brent crude futures for May delivery were down US$0.36 or 0.5% at $73.22 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped $0.37 or 0.5% to $69.98 per barrel.
U.S. President Donald Trump confirmed on Thursday that 25% tariffs on Mexican and Canadian imports will take effect on March 4, alongside an additional 10% duty on Chinese goods.
ANZ analysts noted: "The tariffs threaten to disrupt North America’s tightly integrated oil industry and raise demand for U.S. crude to substitute any Canadian or Mexican oil which may be diverted elsewhere. The U.S. imports approximately 4mb/d from Canada and 400kb/d from Mexico."
Investor sentiment was also hit by weaker U.S. economic data. Jobless claims in the U.S. rose more than expected last week, while a separate report confirmed a slowdown in fourth-quarter economic growth.
Despite these pressures, Brent and WTI crude surged more than 2.1% and 2.5% respectively on Thursday after Trump revoked a licence granted to Chevron, restricting its operations in Venezuela - a move that raised fresh supply concerns.
