Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Oil prices remained largely unchanged in Asian trading on Friday but continued to be on track for their third consecutive weekly decline, driven by concerns over a supply glut and U.S.-China trade tensions.
- Brent Oil Futures: $74.27 per barrel (flat)
- U.S. Crude (WTI) Futures (March): $70.33 per barrel (flat)
Weekly performance: Both Brent and WTI are down nearly 3% this week, as the market weighs:
- Geopolitical uncertainties
- Rising U.S. crude stockpiles
- Donald Trump’s pledge to boost U.S. oil production
Trump’s Production Pledge Raises Oversupply Risks
- On Thursday, President Donald Trump reaffirmed his commitment to expanding U.S. oil production, aiming to:
- Lower energy costs
- Bolster U.S. energy independence
- This added downward pressure to oil prices, which were already declining due to:
- Surging U.S. crude inventories
- Weak demand signals
- Increased U.S. output heightens fears of a supply glut, which could:
- Oversaturate the market
- Drive prices lower as producers compete for buyers
- This comes after the EIA reported a sharp jump in U.S. crude stockpiles, exceeding market expectations.
Additionally, Trump has called on OPEC+ to increase output, seeking to offset potential supply disruptions from sanctions on Russia and Iran.
U.S.-China Trade Tensions Weigh on Oil Demand
- China retaliated against U.S. tariffs by imposing duties on key U.S. energy exports, including:
- Liquefied natural gas (LNG)
- Coal
- Crude oil
- Farm equipment
- China’s counter-tariffs are set to take effect early next week, introducing uncertainty into global energy markets.
- Traders are now waiting to assess the full impact of these measures on oil demand.
Market Outlook
- Oil remains under pressure as Trump’s production plans and trade war risks continue to dominate sentiment.
- Geopolitical tensions and inventory trends will be key drivers for price movements in the coming weeks.
- All eyes are on China’s next steps and whether OPEC+ will respond to Trump’s call for increased production.
