Oil prices rebounded modestly in Asian trading on Friday, following a steep sell-off the previous day. The recovery came as investors reassessed the impact of newly announced U.S. trade tariffs and focused on upcoming OPEC+ supply decisions.
By 01:47 GMT (21:47 ET), September Brent crude futures were up 0.5% at $69.01 per barrel, while West Texas Intermediate (WTI) crude rose 0.7% to $67.00 per barrel. Both benchmarks had dropped nearly 2% on Thursday, retreating from two-week highs earlier in the week.
Trump’s Expanding Tariff Agenda Raises Demand Concerns
President Donald Trump intensified his trade stance on Thursday, unveiling a 35% tariff on Canadian imports starting August 1. He warned that rates could increase if Canada retaliates. This move adds to a string of recent duties—25% on imports from Japan and South Korea and a 50% tariff on copper—all effective the same day.
These aggressive trade measures have raised fears of a broader slowdown in global economic activity, which could weigh on oil consumption. Tariffs typically dampen industrial production and travel—two key sources of energy demand. Analysts at ING cautioned that tariffs present a notable downside risk for oil markets.
OPEC+ Policy in the Spotlight as Output Nears Completion
Meanwhile, supply-side developments also held traders’ attention. According to Bloomberg, OPEC and its allies (OPEC+) are considering halting further production increases after implementing their final scheduled output hike next month.
The group is currently in the final phase of restoring 2.2 million barrels per day to the market, with an additional 550,000 barrels expected in August. However, the cartel on Thursday downgraded its oil demand outlook through 2029, citing persistent headwinds in China’s economy.
ING analysts noted that while markets may be well supplied once the OPEC+ additions are complete, any significant downward pressure on prices may not materialize until the fourth quarter of 2025, when a surplus is expected to emerge.
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