Published Fri, May 23, 2025 · 09:35 PM
[LONDON] Oil prices dropped by nearly 2 per cent on Friday (May 23) and were set for their first weekly decline in three weeks after US President Donald Trump recommended a 50 per cent tariff on the European Union.
Brent Crude futures fell US$1.03, or 1.6 per cent, to US$63.41 a barrel by 1211 GMT. US West Texas Intermediate crude futures were down US$1.07, or 1.8 per cent, at US$60.13.
Prices were already down for a fourth consecutive session, pressured by expectations of higher output from producer group Opec+ in the coming months.
President Trump said on Friday that he is recommending a straight 50 per cent tariff on goods from the EU starting on June 1, saying the bloc has been hard to deal with on trade.
The Opec+ group comprising the Organization of the Petroleum Exporting Countries and allies led by Russia is holding meetings next week expected to yield another output increase of 411,000 barrels per day (bpd) for July.
Reuters reported this month that the group could unwind the rest of its 2.2 million bpd voluntary production cut by the end of October, having already raised output targets by about 1 million bpd for April, May and June. REUTERS
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