Oil prices fell on February 28, heading for their first monthly decline since November, as uncertainty over global economic growth and fuel demand due to Washington's tariff threats and subsequent signs of a U.S. economic slowdown outweighed supply concerns.
As reported by Ukrinform, Reuters reports this.
Brent crude futures for May delivery were down 31 cents, or 0.4%, at $73.26 a barrel, while U.S. West Texas Intermediate futures were at $70.04 a barrel, down 31 cents, or 0.4%. Brent prices expiring later on Friday were at $73.69, down 35 cents, or 0.5%.
Both benchmarks are on track for their first monthly decline in three months.
A long list of factors including concerns about a U.S. economic slowdown, tariffs, OPEC+ plans to increase supply in April and hopes for peace in Ukraine are keeping investors' risk appetite in check and pushing prices down, according to IG market analyst Tony Sycamore.
US President Donald Trump said Thursday that his proposed 25% tariffs on Mexican and Canadian goods would go into effect on March 4, along with an additional 10% tariff on Chinese imports.
Economists at BMI Fitch's research department said it was difficult for market participants to assess the impact of the Trump administration's spate of energy-related policy announcements this month.
“Those on the downside, particularly US tariffs, are now winning,” BMI said in a note.
Investor sentiment was also weighed on by data showing a rise in US jobless claims last week, while another government report confirmed that economic growth slowed in the fourth quarter.
But oil prices rose more than 2% on Thursday as supply concerns resurfaced after Trump revoked U.S. oil company Chevron's (CVX.N) license to operate in Venezuela.
The license revocation could lead to talks on a new deal between the U.S. producer and state-owned PDVSA to export crude oil to destinations other than the United States, sources close to the talks said.
OPEC+ is discussing whether to go ahead with a planned increase in oil output in April or freeze it as its members struggle to understand the global supply picture due to new U.S. sanctions on Venezuela, Iran and Russia, eight OPEC+ sources said.