Crude Oil Prices Fall, but Remain Elevated on Tightening Global Supply Outlook

04:59 AM EDT, 03/28/2025 (MT Newswires) -- Crude oil prices fell early on Friday, but remained near one-month highs as they found support from a tightening global supply outlook due to U.S. tariffs meant to hit oil exports from Venezuela and Iran.

Brent crude lost 0.5% to US$73.69/barrel and West Texas Intermediate crude was down 0.4% to US$69.65/b at last look. Both benchmarks are headed for a third weekly gain despite the losses, with prices up more than 7% since hitting multi-month lows in early March, Reuters said in a Friday report.

U.S. President Donald Trump recently announced 25% tariffs on countries buying Venezuelan crude and sanctions targeting China's imports from Iran.

"The potential loss of Venezuelan crude exports to the market due to secondary tariffs and the possibility of the same being imposed on Iranian barrels has caused an apparent tightness in crude supply," Reuters quoted June Goh, a senior oil analyst at Sparta Commodities, as saying.

However, shifting trade policies are introducing uncertainty in markets, sparking concerns about an economic downturn that would affect oil demand and lead to a price slump, analysts said in the report.

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