Oil prices showed a slight increase during Asian trading on Friday, 7 February, but have been declining for the third week in a row. This was the result of the resumption of the US-China trade war initiated by President Donald Trump.
According to enkorr, Brent crude oil futures rose 32 cents to $74.61 per barrel, but lost 2.8% over the week. WTI rose by 24 cents to $70.85 per barrel, but showed an overall decline of 2.3%.
Experts note that the market continues to react to US sanctions imposed on Iranian oil exports to China. On Thursday, the US Treasury Department imposed restrictions on tankers and individuals involved in the transportation of millions of barrels of Iranian oil every year.
Despite the morning’s recovery, traders remain cautious due to a possible increase in production from OPEC+ and the US, as well as risks associated with new trade tariffs that could affect global oil demand.
Trump has announced a 10% tariff on Chinese imports, but has so far suspended decisions on duties for Mexico and Canada. BMI analysts note that concerns about the escalation of the trade conflict are having a negative impact on the oil market, exceeding even the effect of US sanctions on Iran.
On Thursday, oil prices fell after Trump confirmed his intention to increase US production. This increased market nervousness, as the country has already recorded a significant increase in crude oil stocks due to lower demand during scheduled maintenance of refineries.
