Crude oil extended its decline as conflicting signals on tariff relief left investors uncertain about future demand. While hopes for eased trade restrictions initially sparked optimism, uncertainty over policy details and broader economic implications kept pressure on oil prices.
West Texas Intermediate (WTI) and Brent crude both saw continued losses, with traders struggling to interpret the potential impact of shifting trade policies. The prospect of reduced tariffs could support global growth and fuel demand, but unclear implementation timelines and geopolitical risks have prevented a sustained rally.
Market sentiment also reflected concerns over excess supply, with OPEC+ output levels remaining a key factor. Recent production adjustments have failed to offset broader demand worries, leaving investors cautious about oil’s near-term direction.
The strong U.S. dollar has further weighed on crude prices, making oil more expensive for international buyers. With financial markets awaiting clearer signals from both policymakers and energy regulators, traders remain hesitant to make aggressive moves.
Despite the downward pressure, analysts suggest that any concrete tariff relief could eventually support oil demand, particularly in energy-intensive sectors like manufacturing and transportation. However, short-term price volatility is likely, as investors wait for confirmation of policy changes and their potential economic impact.
As uncertainty lingers, oil markets will remain sensitive to geopolitical shifts, supply data, and global economic trends. Without a clear catalyst for demand recovery, crude prices could continue to face pressure in the coming weeks.
