Oil & Gas

Oil set for biggest weekly drop since October

By Reuters

March 7, 2025, 9:05 AM

A worker checks an oil pipeline at Nahr Bin Umar oil field in Iraq. Markets, including oil, have been whipsawed by the fluctuating trade policy in the US, the world's biggest oil consumer

Oil prices were little changed on Friday but were set for their biggest weekly decline since October as the uncertainty around US tariff policy creates concerns about demand growth when major producers are set to increase output.

Brent futures rose 13 cents, or 0.19 percent, to $69.59 a barrel by 02:17 GMT. US West Texas Intermediate (WTI) crude futures rose 8 cents, or 0.08 percent, to $66.44 a barrel.

However Brent, down 4.9 percent for the week, is set for its biggest weekly decline since the week of October 14. WTI is set to drop 4.8 percent.

Markets including oil have been whipsawed by the fluctuating trade policy in the US, the world’s biggest oil consumer.

On Thursday US President Donald Trump suspended the 25 percent tariffs he had imposed on most goods from Canada and Mexico until April 2, although steel and aluminium tariffs would still go into effect on March 12 as scheduled.

The amended order does not fully cover Canadian energy products, which are under a separate 10 percent levy.

The tariffs themselves are considered a drag on economic growth and therefore also oil demand growth. But the uncertainty over the policy is slowing business decisions, which is also impacting the economy.

Brent prices on Wednesday fell to their lowest since December 2021 after US crude inventories rose and in the wake of Opec+’s decision to increase its output quotas.

Opec+ said on Monday that it had decided to proceed with a planned April output increase, adding 138,000 barrels per day to the market.

Some of the downward momentum in prices has eased as the US looks at steps to halt exports from key Opec producer Iran.

Reuters reported on Thursday that Trump is considering a plan to inspect Iranian oil tankers at sea using an accord aimed at weapons of mass destruction, according to sources, part of the US president’s “maximum pressure” to drive Iranian oil exports down to zero.