Crude oil prices have fallen sharply by nearly $10 per barrel in just one week following the Trump administration’s tariff announcement targeting certain countries.
While oil and gas are exempt from the tariffs, fears over inflation, slower economic growth, and rising trade tensions have contributed to the price drop. Brent Crude, which was priced at $72.94 per barrel, saw a 7% decline, falling to $65.58 on Sunday. West Texas Intermediate (WTI) Crude also dropped by 7.41%, settling at $61.99 per barrel. On Friday, crude oil prices plummeted 7%, reaching their lowest level in over three years. This drop is linked to China’s decision to impose tariffs on U.S. goods, worsening the trade conflict and raising concerns about a potential recession. For the week, Brent crude fell 10.9%, marking its biggest weekly loss in 18 months. WTI prices dropped 10.6%, their largest decline in two years.
The Organization of the Petroleum Exporting Countries (OPEC+) announced plans to boost production by 411,000 barrels per day (bpd) in May, significantly higher than the previous target of 135,000 bpd. This increase has added further pressure on oil prices. Additionally, a Russian court ruling that the Caspian Pipeline Consortium’s (CPC) Black Sea export terminal should remain operational has helped prevent a potential drop in Kazakhstan’s oil output, offering some relief to the market.
Goldman Sachs has revised its 2023 forecast, lowering the average price for Brent crude by 5.5% to $69 per barrel, and for WTI by 4.3% to $66 per barrel. Despite these changes, there has been no impact on domestic fuel prices, with petrol and diesel remaining unchanged.
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