Oil edges higher after 2pc fall on OPEC demand cut and US tariffs 

SINGAPORE: Oil prices held steady in early trading on Friday after tumbling 2 per cent a day earlier, as markets digested fresh US tariffs and a gloomy demand forecast from OPEC.  

Brent crude futures inched up 19 cents, or 0.28 per cent, to trade at $68.83 a barrel by 0037 GMT. Meanwhile, US West Texas Intermediate (WTI) crude rose 26 cents, or 0.39 per cent, to $66.83.  

The modest recovery comes after a sharp sell-off triggered by US President Donald Trump’s surprise announcement of new tariffs. On Thursday, Trump said the US would impose a 35 per cent tariff on imports from Canada starting August 1. He also hinted at sweeping duties of 15 to 20 per cent on goods from other trading partners, raising fears of a global economic slowdown.  

The pressure on oil markets was compounded by OPEC’s latest World Oil Outlook, released on Thursday, which trimmed its demand forecasts for the years 2026 to 2029. The group now expects global oil demand to average 106.3 million barrels per day (bpd) in 2026, down from the 108 million bpd projected last year, mainly due to weakening consumption in China.  

Adding to market uncertainty, Trump also signalled plans for new tariffs on Brazil, Latin America’s largest economy, and targeted key sectors including copper, semiconductors and pharmaceuticals.  

Meanwhile, the European Union is reportedly preparing a new sanctions package that could include a floating price cap on Russian oil. The move follows a drop in oil prices that rendered current fixed cap ineffective, according to EU diplomatic sources. 

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