Oil Prices Rise as U.S. Tariffs Create Uncertainty in Global Markets

Oil prices stayed close to their highest levels in a month on Friday, ready to finish their third week of gains. This happened because the U.S. put new tariffs on countries buying oil and gas from Venezuela and restricted oil trade from Iran.

Brent crude oil prices fell by 8 cents to $73.95 a barrel, while U.S. oil, called West Texas Intermediate, also dropped by 8 cents to $69.84 a barrel. These small drops come after both types of oil gained over 2% this week.

U.S. President Donald Trump announced last Monday that there would be 25% tariffs on companies buying Venezuelan oil. This decision created more uncertainty for buyers, causing Venezuelan oil exports to China, the biggest buyer, to stop. Reports also say that India’s Reliance Industries, which runs the largest oil refinery in the world, will stop importing oil from Venezuela.

Additionally, there are signs of improved oil demand in the U.S., the world’s biggest oil consumer. U.S. crude inventory dropped more than expected by 3.3 million barrels, totaling 433.6 million barrels. Analysts had predicted a smaller drop of 956,000 barrels.

However, the overall situation in the global oil trade is becoming more uncertain. Increasing U.S. tariffs have raised concerns about a potential economic downturn, which could hurt oil demand. Because of this, experts believe that oil prices may not continue to rise sharply in the current climate.