The argument between Trump and Zelinski lands at oil prices economy

Crude oil prices fell at the end of the week’s trading on Friday after thorny talks at the White House Oval Office between US President Donald Trump and Ukrainian Folodimir Zellinski.

Oil prices pressed fears of the impact of new customs duties, Trump announced its approval and entry into force on the fourth of March, in addition to the announcement of Iraq yesterday about the proximity of resuming oil exports from the Kurdistan region of Iraq.

Brent crude futures decreased to the nearest month of entitlement to 86 cents, or 1.16%, to $ 73.18 a barrel upon settlement, while West Texas Intermediate crude recorded $ 69.76 a barrel, a decrease of 59 cents, equivalent to 0.84%.

West Texas Intermediate crude was ascending before the end of the session until a verbal argument broke out in the Oval Office between Trump and his Ukrainian counterpart Zellinski regarding a possible ceasefire agreement between Russia and Ukraine.

Trump threatened to stop support for Kiev, while Zellinski left the White House without signing a joint development agreement for mineral resources in Ukraine.

Customs

On Thursday, Trump said that the proposed customs duties by 25% on Mexican and Canadian goods will enter into force on the fourth of March, along with other fees by 10% on Chinese imports in addition to 10% fees imposed on them last month.

The tariff war may slow global growth, ignite inflation, and thus negatively affect the demand for crude oil.

Kurdistan region oil

On another oil, the Iraqi Ministry of Oil said on Friday that Baghdad will announce in the coming hours the resumption of oil exports from the Kurdistan region of Iraq through the oil marketing company (Sumo) through the Turkish port of Jihan.

Iraq is scheduled to export 185 thousand barrels per day via (Sumo), and this quantity is also scheduled to increase.

Nevertheless, 8 international oil companies working in the Kurdistan region said that they will not resume exports due to lack of clarity on commercial agreements and guarantees to pay payments on previous and future exports.

“The resumption of exports raises questions about how Iraq complies with its obligations in the OPEC Plus framework, after it has constantly produced more than its share,” said Harry Chillinguran, head of research at the Unix Capital Group.

“If the (alliance) of OPEC Plus postpone the return of 120 thousand barrels per day of voluntary discounts for production starting from April, the increase in Iraq will go beyond this restriction,” he added.

8 Sources in OPEC Plus said that the group discusses whether it will proceed with its plan to increase oil production in April or will freeze it at a time when its members face difficulty reading the scene of global supplies.