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Crude Oil Prices Fall For First Time Since November On Economic Doubts
Friday, 28 February 2025 16:28 WIB | OIL |WTIOil,

Crude oil prices fell on Friday as they headed for their first monthly decline since November, driven by uncertainty over global economic growth and fuel demand amid Washington's tariff threats and signs of a slowing U.S. economy.

The more active May Brent crude was down 59 cents, or 0.8%, at $72.98 a barrel by 0747 GMT. U.S. West Texas Intermediate crude was at $69.70 a barrel, down 65 cents, or 0.9%. Front-month Brent, which expires on Friday, was trading at $73.42, down 62 cents, or 0.8%.

Both benchmarks were on track for their first monthly decline in three months.

Factors including expectations of a U.S. economic slowdown, tariffs, OPEC+ plans to increase supply in April and the possibility of peace in Ukraine, which could make more Russian oil available, have curbed investor risk appetite.

"The only argument against it is that prices have fallen so much," said IG market analyst Tony Sycamore, adding that WTI is well supported between $65 and $70 a barrel based on technical charts.

U.S. President Donald Trump said Thursday his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4, along with an additional 10% duty on Chinese imports.

Economists at BMI's Fitch research unit said market participants were struggling to gauge the impact of all the energy-related policy announcements made by the Trump administration this month.

"Those who are weighing the downside, particularly the U.S. tariff action, are currently winning," BMI said in a note.

Also weighing on investor sentiment, data showed U.S. jobless claims jumped more than expected in the previous week, while another government report provided further evidence that economic growth slowed in the fourth quarter.

Still, oil prices rose more than 2% on Thursday as supply concerns resurfaced after Trump revoked a license granted to U.S. oil major Chevron (NYSE:CVX) to operate in Venezuela.

The cancellation could lead to negotiations on a new agreement between U.S. producers and state-owned PDVSA to export crude to destinations other than the United States, sources familiar with the talks said.

OPEC+ is debating whether to raise oil output in April as planned or freeze it as its members struggle to read the global supply picture, eight OPEC+ sources said.

Source: Investing.com

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