Crude oil futures saw a decline in trading on Friday morning as the US administration announces plans to impose tariffs on Mexico, Canada, and China starting March 4. May Brent oil futures were down 0.52% at $73.19, while April crude oil futures on WTI stood at $69.95, a decrease of 0.57%.
President Trump took to social media to express concerns about the high levels of drug trafficking from Mexico and Canada, with a significant amount originating from China. In response, he announced that tariffs will be implemented as scheduled, including an additional 10% tariff on China. The impact of these tariffs is expected to affect global commodity demand, including crude oil.
On another front, OPEC+ is in discussions about whether to proceed with the planned increase in oil output for April or to freeze it due to uncertainties surrounding global supply because of US sanctions on Venezuela, Iran, and Russia. While some members, like the UAE and Russia, are in favor of the increase, others, including Saudi Arabia, are advocating for a delay.
Recent peace talks between Russia and Ukraine have raised hopes for increased crude oil supply to the market, potentially easing sanctions on Russia and improving global oil supply.
In the commodities market, April jeera contracts saw a slight increase to ₹20875 on the National Commodities and Derivatives Exchange (NCDEX), while April dhaniya futures were down to ₹8100.
Overall, the market remains cautious as geopolitical tensions and trade uncertainties continue to impact global commodity trading.
