Investing.com-- Oil prices fell in Asian trade on Friday and were headed for a weekly loss amid heightened uncertainty over U.S. President Donald Trump’s trade tariffs, with focus turning to an upcoming OPEC+ decision on output.
Oil was headed for a second straight week in red, as uncertainty over Trump’s tariffs and their economic impact weighed on the outlook for demand, especially in the medium to long term.
Brent oil futures for August fell 0.4% to $63.89 a barrel, while West Texas Intermediate crude futures fell 0.5% to $60.66 a barrel by 22:24 ET (02:04 GMT). Prices were set to lose more than 1% this week.
Still, some losses in crude were limited by data showing an unexpected, 2.8 million barrel draw in U.S. inventories last week.
Crude hit by US tariff whipsaw
Oil had gained some ground on Thursday after a federal trade court ruled to block Trump from imposing his planned reciprocal tariffs.
But the ruling was swiftly appealed, with an appeals court reinstating Trump’s tariff plans, at least temporarily, as their legality is considered. Trump lashed out against the trade court on Thursday and expressed hope that the Supreme Court will back his tariff agenda.
Legal sparring over Trump’s tariffs sparked renewed concerns over their economic impact, sparking losses across most risk-driven assets.
Adding to concerns over the trade tariffs, U.S. Treasury Secretary Scott Bessent said that trade talks with China had “stalled,” denting hopes for a more permanent trade deal between Washington and Beijing.
Traders feared that Trump’s tariffs, if implemented in their full range, will dent economic growth and undermine oil demand.
OPEC+ meeting in focus after cartel keeps production quotas
Eight members of the Organization of Petroleum Exporting Countries and allies (OPEC+) are set to meet on Saturday and decide on a potential production hike in July.
Expectations of a production hike were somewhat diminished by the cartel leaving its formal production quota unchanged earlier this week.
Focus will also be on a standoff between Kazakhstan and the OPEC+, after the country rejected calls from the cartel to cut its production.
