Oil recorded its biggest monthly drop since September as escalating tariff threats from US President Trump weakened investor confidence, strengthened the dollar, and dimmed energy demand prospects.
WTI crude fell nearly 1%, closing below $70 per barrel and ending the month 3.8% lower. Trump confirmed tariffs on Canadian and Mexican imports starting March 4 and threatened higher levies on Chinese imports.
In response, Mexico considered countermeasures, while Beijing vowed retaliation.Crude marked its sixth straight weekly loss, weighed down by US trade policy and weak economic data. Algorithmic traders are building a net-short position in oil for the first time since December, said TD Securities’ Daniel Ghali.Potential US tariffs could raise oil costs due to reliance on Canadian and Mexican imports while also threatening economic growth and energy demand.
Market volatility increased after Trump’s tense meeting with Ukraine’s Zelenskiy ended without a deal on US involvement in Ukraine’s commodities sector. Meanwhile, Iraq’s Kurdistan may resume pipeline exports, and OPEC+ is likely to delay a production hike.
