INSUBCONTINENT EXCLUSIVE:
Oil prices soared on Thursday, February 27, after U.S
President Donald Trump announced measures disrupting global crude supply chains.Brent crude futures for April delivery rose 2.08%, closing
at $74.04 per barrel, while West Texas Intermediate (WTI) gained 2.52%, settling at $70.35 per barrel.These sharp increases reflect market
fears over restricted supply following a series of geopolitical and trade policy moves
exports.Simultaneously, the U.S
Adding to the tension, Trump confirmed a 25% tariff on crude imports from Canada and Mexico, effective next week.These two countries are
refineries, which rely heavily on their heavy crude blends
The market reacted swiftly to these developments, with traders pricing in tighter supply amid growing geopolitical risks.Oil Prices Surge as
Policies Tighten Global Supply
Meanwhile, sanctions on Iran continue to reduce its ability to sell crude internationally, exacerbating the supply crunch.Despite these
bullish factors, economic concerns tempered market sentiment
GDP growth and rising unemployment claims raised fears about weaker oil demand in the coming months.Trade tensions with China also added
uncertainty, with planned tariff hikes on Chinese imports set to take effect in March
Technical analysis showed Brent testing resistance at $74.85 per barrel, with potential gains toward $77 if it breaks higher.WTI faced
similar resistance near $70.38 but could see declines if it fails to hold current levels
Energy-focused ETFs saw modest inflows as investors sought exposure to oil amid heightened geopolitical risks.However, analysts warned that
economic headwinds and potential OPEC+ production increases could limit further price gains
Global markets remain tense as traders monitor OPEC+ decisions and U.S
economic data for direction in March.The combination of supply constraints and demand concerns sets the stage for continued volatility in
oil prices heading into next week.
