Geri
US crude oil fell below $ 69 a barrel, hitting its lowest closing level this year. Prices fell 2.5 per cent, recording the sharpest decline in the US consumer confidence index since 2021. While uncertainties in the markets played a main role in the reduction, concerns that US President Donald Trump's policies will stagnate economic growth and reduce energy demand are among the causes for the decline.
With the decree signed by US President Donald Trump on 1 February, it was announced that an additional customs duty of 25 percent would be imposed on products imported from Canada and Mexico and 10 percent on products imported from China. Following this announcement, the US government decided to postpone customs duties on these two countries for a month after talks with the leaders of Mexico and Canada. In addition to Trump's trade tariffs, uncertainties regarding the road map to be followed by the US Federal Reserve (Fed) in the coming period, production increases from Nigeria and Iraq, negative economic data from the US and Germany, and the Trump administration's preparations to impose new restrictions on China's chip sector also increase concerns about oil demand. Although the depreciation of the US dollar against the euro, yen and sterling tried to stabilise oil prices, it could not avoid the reduction in oil prices as a result.
Frank Monkam at Buffalo Bayou Commodities said, ‘Crude oil markets are seeing another layer of bearish pressure after a series of failures in economic data. Such a downturn in economic data is a bad sign for crude oil demand.’
