
Crude oil prices face volatility as global markets grapple with recent U.S. trade policy developments and potential OPEC production increases.
Despite the brief nature of tariff threats against Colombia, analysts warn that similar actions could have far-reaching consequences for global markets.
President Trump’s renewed calls for OPEC to lower oil prices have sparked discussions about potential production increases. OPEC is reportedly considering raising output as early as April, a move that could further depress crude prices.
This comes as U.S. crude production is expected to reach record highs, with forecasts of 13.5 million barrels per day in 2025.
The upcoming Federal Reserve interest rate decision is poised to significantly impact market sentiment.
A hawkish stance could dampen economic growth and oil demand expectations, while a more dovish approach might provide support for crude prices.
David Eng, Investment Advisor at Harbourfront Wealth’s Sonora Wealth Group, warns that this uncertain outlook in oil markets could challenge Canada’s economic stability.
“Falling crude prices threaten to widen Canada‘s trade deficit, which could weigh heavily on the Canadian dollar, already hovering at multi-year lows,” Eng stated.
As of Tuesday morning, Brent crude was trading at US$77.63 per barrel, down 1.11 per cent, while U.S. West Texas Intermediate crude fell 1.19 per cent to US$73.77 per barrel.
These price movements reflect the complex interplay of geopolitical tensions, economic policies, and global supply-demand dynamics shaping the oil market landscape.