Oil Set for First Monthly Decline Since November Amid Economic Uncertainty

Oil prices are set for their first monthly decline since November, raising tensions about economic uncertainty in global markets. By Friday, Brent crude futures slid to $72.98 per barrel, down 0.8 percent and U.S. West Texas intermediate crude fell to $69.70 per barrel, decline of 0.9 percent.

Several factors have pressed into this decline, including fears of a U.S. economic slowdown, impacts of President Trump’s proposed tariffs and worries about global fuel demand. Trump will levy 25% tariffs on Mexican and Canadian goods and an additional 10% on imports from China starting on March 4. The health of the oil market remains cloudy, as analysts collapsed to find out the reason for full impacts.

The situation has further been complicated by U.S. jobless claims, which have climbed higher than expected and contradictory with data suggesting slower economic growth for the fourth quarter. Yet, there were supply concerns evolving in respect of lowered U.S. oil operations in Venezuela due to the Chevron license being canceled.

Some analysts indicate oil prices are being held up at $65-$70 per barrel, according to technical charts. OPEC+ members are also discussing whether to raise oil production or remain unchanged in April, adding another source of uncertainty for the market.