Oil prices were heading for their second straight weekly fall on Friday against a backdrop of investor concern over recession sparked by the burgeoning trade war between the United States and China.
Brent crude futures were down 25 cents on the day, or 0.39%, at $63.08 a barrel by 1312 GMT while U.S. West Texas Intermediate crude fell 30 cents, or 0.50%, to $59.77.
Brent and WTI are poised to register weekly declines of 3.8% and 3.5%, respectively, having both lost about 11% last week. Brent dipped below $60 a barrel at one point this week for its lowest since February 2021.
"China's retaliations, with higher U.S. tariffs, have weighed on market sentiment and dragged oil prices lower," said UBS analyst Giovanni Staunovo.
China announced on Friday that it will impose a 125% tariff on U.S. goods from Saturday, up from the previously announced 84%, after U.S. President Donald Trump raised tariffs against China to 145% on Thursday.
Trump this week paused heavy tariffs against dozens of other trading partners, but a prolonged dispute between the world's two biggest economies is likely to reduce global trade volumes and disrupt trading routes, weighing on global economic growth and reducing demand for oil.
"Although the implementation of some tariffs, excluding those on China, was delayed by 90 days, the market damage had already been inflicted, leaving prices struggling to regain stability," said Ole Hansen, head of commodity strategy at Saxo Bank.
BMI analysts, meanwhile, "expect prices will remain under pressure as investors assess ongoing trade negotiations and rising tensions between Washington and Beijing".
Source: Investing.com
