Oil prices edged slightly higher on Friday but posted a weekly decline, ending a four-week streak of gains. Brent crude futures settled up 21 cents (0.27%) at $78.50 per barrel, while U.S. West Texas Intermediate (WTI) rose 4 cents (0.05%) to $74.66. Despite these gains, Brent fell 2.8% for the week, and WTI dropped 4.1%.
President Trump reiterated his demand for OPEC to lower oil prices to pressure Russia financially and expedite an end to the war in Ukraine. He argued that reduced oil revenue for OPEC could lead to a quicker resolution. Analysts noted, however, that looming U.S. sanctions on Russia and Iran—major oil producers—could counteract Trump’s efforts to lower energy costs. Trump’s earlier remarks at the World Economic Forum, calling on OPEC and Saudi Arabia to cut prices, have yet to elicit a response from the group, which plans to begin increasing oil output in April. The week saw further developments in U.S. energy policy, with Trump declaring a national energy emergency to remove environmental restrictions and maximize domestic oil and gas production. While these measures could support demand, they also raise concerns about exacerbating oversupply. Chevron’s expansion of the Tengiz oilfield, which will contribute about 1% of global crude supply, adds further pressure on OPEC’s production management efforts.
Global trade uncertainty also weighed on oil markets as Trump threatened tariffs, including 25% on Canada and Mexico, 10% on China, and additional levies on the European Union. Analysts warn that these policies could dampen global growth and oil demand, fostering market caution. While bullish factors such as declining U.S. crude inventories, which reached their lowest level since March 2022, have provided brief upward momentum, concerns about oversupply and weak demand from China continue to overshadow the market. Brent and WTI are expected to trade between $76.50 and $78 per barrel in the near term.