Oil prices are falling due to economic uncertainty.

Oil prices fell on February 28, heading towards their first monthly decline since November. This drop was driven by uncertainties surrounding global economic growth and fuel demand due to tariff threats from Washington, along with further indications of an economic slowdown in the United States, which outweighed concerns about supply.

https://www.ukrinform.ua/rubric-economy/3965311-nafta-desevsae-cerez-ekonomicnu-neviznacenist.html2025-02-28 08:20:44

As reported by Ukrinform, this information comes from Reuters.

May futures for Brent crude oil fell by 31 cents, or 0.4%, to $73.26 per barrel, while futures for American West Texas Intermediate oil were at $70.04 per barrel, down 31 cents, or 0.4%. Brent prices, which expire later on Friday, traded at $73.69, which is 35 cents lower, or 0.5%.

Both benchmarks are on track for their first monthly decline in three months.

According to market analyst IG Tony Sycamore, a long list of factors, including concerns about economic slowdown in the U.S., tariffs, OPEC+ plans to increase supply in April, and hopes for peace in Ukraine, are dampening investors' risk appetite and pushing prices down.

U.S. President Donald Trump stated on Thursday that his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4, along with an additional 10% tariff on Chinese imports.

Economists from the BMI Fitch research division noted that market participants are struggling to assess the impact of the flow of political statements related to energy made by the Trump administration this month.

“Negative factors, particularly U.S. tariff measures, are currently prevailing,” the BMI memo states.

Investor sentiment is also influenced by data indicating an increase in unemployment claims in the U.S. from the previous week, while another government report confirmed that economic growth slowed in the fourth quarter.

However, oil prices rose by more than 2% on Thursday, as concerns about supply resurfaced following Trump's revocation of the license granted to American oil company Chevron (CVX.N) for operations in Venezuela.

The cancellation of the license could lead to negotiations for a new deal between the American producer and the state-owned PDVSA regarding crude oil exports not destined for the U.S., sources close to the negotiations reported.

OPEC+ is discussing whether to implement the planned increase in oil production in April or to freeze it, as its members find it difficult to understand the picture of global supplies due to new U.S. sanctions on Venezuela, Iran, and Russia, according to eight OPEC+ sources.