Softening oil prices

The prospects for weaker demand amidst higher oil supplies will clearly weigh on prices

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RENT SPOT PRICES softened to lows of $69.7 a barrel last week as global markets reacted to US President Donald Trump's tariff disruption and the oil cartel, Organization of the Petroleum Exporting Countries (OPEC), and its allies' decision to increase production from April. The prospect of a trade war has triggered fears of weaker global demand amidst prospects of higher oil supplies. The question naturally is whether the dip in oil prices is only a blip or an augury for a persisting downtrend. Global oil prices have been trending lower since the second half of 2024, averaging $77 a barrel. They rallied to $79.27 a barrel in January before slumping to $75.44 a barrel in February. Concerns about Trump's tariff bluster were already weighing on global crude prices. The US President has also been exerting pressure on Saudi Arabia and other OPEC nations to "bring down the cost of oil" while doubling down on his threat to use tariffs. The oil cartel and its allies appear to have o