10 Mar 2025

WTI experiences a slight decline as concerns mount regarding the potential effects of President Trump's trade tariffs on fuel demand.

Additionally, OPEC+ has announced plans to increase oil production starting in April, which is expected to further exert downward pressure on oil prices.

Conversely, Trump's indication of possible additional sanctions on Russia, along with a weaker US dollar, provides some support for the market.

West Texas Intermediate (WTI) crude oil prices are finding it challenging to build on the modest gains observed on Friday, as new selling pressure emerges at the beginning of the week. Currently, the commodity is trading just below the mid-$66.00 range, reflecting a decrease of nearly 0.60% for the day, and appears susceptible to further declines.

Market participants are increasingly concerned about the potential economic repercussions stemming from President Trump's trade tariffs and their implications for fuel demand. Moreover, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have confirmed their intention to implement oil output increases starting in April, which is anticipated to significantly influence crude oil prices.

The drawbacks associated with the black liquid appear to be minimal, particularly following Trump's warning that the United States would impose additional sanctions on Russia should it fail to achieve a ceasefire with Ukraine. Nevertheless, two individuals familiar with the situation informed Reuters that the US is also exploring options to relax sanctions on Russia's energy sector if it consents to conclude its extended conflict with Ukraine.

In the meantime, the disappointing US jobs report released on Friday has reinforced market expectations that the Federal Reserve (Fed) is likely to implement multiple interest rate cuts this year. This situation continues to keep the US Dollar (USD) near its lowest point since November, which is expected to provide support for USD-denominated commodities and help mitigate losses in Crude Oil prices.