Brent slips below $70/bbl for the first time in 2025
The front-month ICE Brent contract has declined by $1.47/bbl on the day, to trade at $69.28/bbl at 09.00 GMT.
PHOTO: Oil barrels. Getty Images
Upward pressure:
Brent has found modest support from improving sentiments in the broader financial markets, after the US government granted a one-month exemption to automakers in Canada and Mexico from 25% import tariffs, the Associated Press (AP) reported.
The news comes as a relief after the US struck the first blow in trade wars with Canada, Mexico and China, which has rattled financial markets and weighed on demand growth sentiment.
“...sentiment in the financial markets began to recover as the US exempted Canadian and Mexican automakers from import tariffs and indicated it was weighing exclusions for some other sectors,” VANDA Insights’ founder and analyst Vandana Hari remarked.
Downward pressure:
Brent has dropped below the $70/bbl threshold for the first time since September 2024, driven by concerns over slowing oil demand in an oversupplied global market and impending tariffs.
Eight members of the Saudi Arabia-led OPEC+ oil producers’ group have reaffirmed plans to proceed with a gradual unwinding of cuts from 1 April. They have 2.2 million b/d in combined production cuts.
This development is expected to add about 138,000 b/d of crude oil to the market, which could dampen demand and exert downward pressure on Brent, according to market analysts.
“Sentiment remains weak following OPEC’s decision to go ahead with its planned production hikes in April,” ANZ Bank senior commodity strategist Daniel Hynes said.
Brent came under further downward pressure after the US Energy Information Administration (EIA) reported a 3.6 million-bbl rise in commercial US crude inventories. The EIA data was “fairly bearish,” two analysts from ING Bank said.
“Rising OPEC supply and prospects for further increases, combined with ever-present tariff uncertainty, pushed the market lower,” ING Bank analysts added.
By Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
