Lagos — Crude oil futures were under pressure as concerns over U.S. import tariffs and their impact on global economic growth and fuel demand weighed on market sentiment.
Tariffs imposed and delayed by President Trump on key oil suppliers, such as Canada and Mexico, combined with China’s retaliatory measures, raised fears of a global economic slowdown.
This uncertainty has added downward pressure on crude prices, as slower growth and reduced demand are expected to dampen market activity.
The short-term outlook remains bearish, with tariff-related risks continuing to affect the oil market sentiment. However, a potential resolution could provide some support.
Saudi Arabia’s decision to cut crude prices for Asia and deflationary data from China have further intensified the negative sentiment. The price cuts are seen as an attempt to maintain market share due to growing supply and weaker demand.
These actions have heightened fears of a prolonged market downturn. Further downward pressure on prices in the near term could materialize, as both demand uncertainties and supply-side adjustments contribute to near-term bearish sentiment.
Meanwhile, OPEC+’s decision to increase oil output from April adds to supply concerns, potentially exacerbating the market imbalance.
Whilst the output increase could indicate confidence in future demand recovery, it risks oversupply in the face of global economic uncertainty. As a result, the market is likely to remain under pressure, with any recovery dependent on clearer indications of stronger demand.
*Joseph Dahrieh, Managing Principal at Tickmill
