Oil prices fell on Friday following comments from US President Donald Trump regarding tariffs on other countries, and their retaliatory responses.
The international benchmark Brent crude decreased by 0.6%, trading at $72.84 per barrel at 11.20 a.m. local time (0820 GMT), down from $73.28 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) decreased by 0.7%, settling at $69.49 per barrel, compared to its prior session close of $69.98.
In a post on Truth Social, Trump announced on Thursday that the sanctions against Mexico and Canada will take effect on March 4 as planned, citing the flow of drugs into the country.
'China will likewise be charged an additional 10% tariff on that date. The April Second Reciprocal Tariff date will remain in full force and effect,' he added.
In the short term, tariffs are expected to slow economic growth, weaken energy demand, and suppress prices.
According to experts, these tariffs could negatively impact global growth in the long run, leading to a trade war that might reignite inflation, resulting in increased oil prices.
In addition, uncertainty over the US Federal Reserve's (Fed) policy on rates in the coming period continue to have a negative impact on oil prices.
Cleveland Fed President Beth Hammack said on Thursday that while there are good reasons to expect inflation to gradually fall to 2% over the medium term, this is far from certain, adding that there are upside risks to the inflation outlook.
Kansas City Fed President Jeff Schmid also noted that inflationary risks appear to be on the upside and that increased uncertainty could put pressure on economic growth.
Experts suggest that if inflation shows an upward trend, Fed may pause any rate cuts. The delay in rate cuts is expected to put downward pressure on oil prices.
By Basak Erkalan
Anadolu Agency
energy@aa.com.tr