Oil prices dip as demand outlook weakens

• Brent crude steady near $63 level
• US-China trade tensions escalate
• EIA cuts oil demand forecasts
• OPEC+ increases output levels

Brent crude oil steadied near $63 a barrel on Friday, heading for its second straight weekly drop as worries over weakening global demand intensified.

Growing U.S.-China trade tensions fueled the downturn, with the U.S. imposing a sharp 145% tariff hike on Chinese imports, stoking fears of lower fuel demand from the world’s top oil buyer.

This overshadowed the 90-day tariff reprieve granted to other nations, further clouding the already fragile demand outlook.

The EIA added to the bearish sentiment by trimming its global oil demand projections for 2025 and 2026.

Meanwhile, supply-side pressures mounted as OPEC+ ramped up production, raising concerns of a potential glut.

Additional supply risks emerged, including new U.S. sanctions on Iranian oil networks.

With conflicting demand and supply signals weighing on the market, Brent prices remained under pressure.