Oil prices extended declines during Asian trade on Friday, hitting fresh three-week lows as concerns mounted over a potential global trade war sparked by United States President Donald Trump's sweeping tariff measures earlier in the week.
By 3:35 pm AEDT (4:35 am GMT) Brent crude futures were down $0.65 or 0.9% to US$69.49 per barrel, while U.S. West Texas Intermediate (WTI) crude lost $0.67 or 1%, to $65.80.
The market downturn comes amid heightened fears that escalating trade tensions could curb global economic growth and, by extension, energy demand.
ANZ analysts noted in a client memo: "Commodity markets have been worried about the secondary impact on demand from weaker economic growth caused by broader tariffs. So the announcements are unlikely to alleviate those concerns.
"Risks of weaker global growth have risen significantly, particularly if impacted economies retaliate. Trump warned that he is prepared to go higher if countries retaliate or lower if concessions are made."
Investor sentiment was further dampened by OPEC+’s decision to accelerate its planned production increase. The alliance will now “implement a production adjustment of 411 thousand barrels per day, equivalent to three monthly increments, in May 2025”, adding further supply pressure to the already fragile market.
