Crude oil unsteady amid OPEC uncertainty, trade tensions, new analysis says

A new market analysis by Canada-based investment firm Harbourfront Wealth shows volatility in crude oil prices amid recent global shifts. Analyst David Eng published the following report:

“Crude prices were volatile and came under pressure as the market reacted to the latest developments in U.S. trade policy. Although the tariffs the Trump administration threatened to apply on Colombia were short-lived, similar trade actions could cause ripples across global markets.

Adding to the bearish sentiment, President Trump’s calls for OPEC to lower oil prices may reignite discussions around production increases. OPEC is reportedly planning to raise output as early as April, a move that could further weigh on crude prices. Similarly, crude production levels in the U.S. could increase, supported by the new administration’s policies.

Additionally, the upcoming Federal Reserve interest rate decision could play a critical role in shaping market sentiment. A hawkish monetary stance could weigh on economic growth and oil demand expectations. Conversely, a softer monetary approach could lend support to crude prices.

This uncertain outlook in oil markets could pose a challenge to Canada's economic stability, given its heavy reliance on oil exports. Falling crude prices threaten to widen Canada’s trade deficit, which could weigh heavily on the Canadian dollar, already hovering at multi-year lows.”