Oil prices edged higher on Friday in Asian trading, recovering slightly from a nearly 2% drop the day before, as markets turned cautious amid ongoing trade tensions and uncertainty over OPEC+ production plans.
Brent crude rose 0.5% to $69.01 per barrel, while WTI climbed 0.7% to $67.00.
The rebound came after U.S. President Donald Trump announced a new 35% tariff on Canadian imports starting August 1, adding to previous tariffs imposed on South Korea, Japan, and copper products.
Analysts warned that the expanding tariff regime could raise trade costs, weaken industrial activity, and ultimately suppress global oil demand, which remains a critical driver of price support.
At the same time, investors are watching OPEC+ closely. The group is reportedly nearing the completion of its 2.2 million barrels-per-day supply restoration, and may pause further increases beyond August. OPEC has also downgraded its long-term demand outlook, citing a slowdown in China’s economic momentum.
According to several market forecasts, crude prices may face continued downside pressure into Q4 if demand growth fails to pick up meaningfully.