Can Oil Prices Overcome Economic Uncertainty?

Crude oil prices faced another volatile week as traders balanced conflicting fundamentals.

While supply-side data offered some bullish support, persistent economic concerns, escalating trade tensions, and OPEC+ production plans kept a lid on potential gains.

With the market struggling to find clear direction, traders are now looking ahead to next week’s key economic and inventory data for fresh catalysts.

Did Economic Concerns Keep Oil Prices in Check?

Crude oil started the week on a relatively steady note but faced headwinds from broader economic worries. The U.S. dollar weakened to fresh lows, providing some short-term support to oil prices by making crude more attractive to foreign buyers. However, this boost was tempered by lingering fears of a U.S. recession and the potential impact of trade tariffs on global demand.

Investor sentiment remained fragile as U.S. stock markets posted significant declines. The Nasdaq plunged 4%—its worst drop since 2022—while the S&P 500 also saw sharp losses. Concerns over slowing economic growth and a weakening consumer outlook weighed on risk assets, including crude oil.

Adding to the uncertainty, President Donald Trump announced a series of new tariffs on key trade partners, including a 25% duty on steel and aluminum imports from Canada. This move sparked fears of retaliatory actions that could slow global trade and energy demand.