Oil prices rose on Friday but were set for close to a 4% weekly decline as uncertainty surrounding U.S. tariff policies raised concern over demand growth while major producers prepared to increase output.
Brent crude futures rose 93 cents, or 1.34%, to $70.39 a barrel by 1017 GMT. U.S. West Texas Intermediate futures rose 88 cents, or 1.33%, to $67.24 a barrel.
“The OPEC+ decision to unwind voluntary cuts sent oil prices tumbling below $69 a barrel, and today the market is bouncing back with comments from Treasury Secretary Scott Bessent indicating the U.S. aim is to reduce Iranian crude exports to a trickle,” said Harry Tchilinguirian at Onyx Capital Group.
“We think many price-sensitive buyers, like Chinese refiners, are coming out of the woodwork to pick up attractively priced Brent.”
However, for the week Brent is down 3.8%, set for its biggest weekly decline since the week of November 11. WTI is set to finish 3.7% down for its biggest weekly drop since the week of January 21.
U.S. President Donald Trump’s administration is considering a plan to inspect Iranian oil tankers at sea, Reuters reported on Thursday, citing sources familiar with the matter, continuing efforts to drive down Iranian oil exports to zero.
Global markets have been whipsawed by fluctuating trade policy in the U.S., the world’s biggest oil consumer.
“Volatility remains high, with concerns over retaliatory measures from U.S. tariff moves set to further hinder economic recovery in the major economies,” said Panmure Liberum analyst Ashley Kelty.
“China has indicated it may introduce further stimulus measures to cushion the blow of U.S. tariffs, and this helped to boost sentiment that demand growth may be better than previously feared.”
On Thursday Trump suspended the 25% tariffs he had imposed on most goods from Canada and Mexico until April 2, though steel and aluminium tariffs would still take effect on March 12.
Brent prices on Wednesday fell to their lowest since December 2021 after U.S. crude inventories rose and OPEC+ announced its decision to increase output quotas.
The group said on Monday that it had decided to proceed with a planned April output increase, adding 138,000 barrels per day to the market.
Some analysts suggested that the increases could be paused after the initial barrels are brought in.
Any further decisions are likely to depend on oil prices, with tariffs playing a significant role in influencing these, said Tamas Varga, analyst at oil broker PVM.
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