Oil prices dipped on Friday as fears of a U.S. tariff-driven global recession weighed on sentiment, but they still posted a third consecutive weekly gain, driven by Washington’s increasing pressure on Venezuela and Iran.
Brent crude futures fell 40 cents (0.5%) to settle at $73.63 a barrel, while WTI declined 56 cents (0.8%) to close at $69.36.
The sell-off came as President Trump prepared to announce new reciprocal tariffs on a broad range of imports, effective April 2. Analysts at JPMorgan warned that escalating trade tensions and policy uncertainty could heighten recession risks, although high-frequency oil demand indicators have remained stable so far.
Midweek EIA data showed a sharper-than-expected 3.3-million-barrel decline in U.S. crude inventories, supporting oil prices earlier in the week.
Despite Friday’s drop, Brent finished the week up 1.9%, while WTI gained 1.6%. Since hitting multi-month lows in early March, both benchmarks have recovered strongly—Brent rising more than 7% and WTI over 6%.
The week’s key market driver was Trump’s latest sanctions, which further squeezed Venezuela’s oil exports. His administration imposed 25% tariffs on nations purchasing Venezuelan crude, days after new measures targeted China’s imports of Iranian oil.
Analysts expect these sanctions to accelerate Venezuela’s production decline, potentially reducing output by another 200,000 barrels per day. The measures have already caused trade disruptions, with India’s Reliance Industries reportedly halting Venezuelan oil imports.
With the U.S. aiming to drive Iranian oil exports to zero, analysts believe the second quarter could see tighter supply conditions than previously expected.
Meanwhile, OPEC+ is set to begin its planned production increases in April, with further output hikes expected in May.