Oil Prices Drop Ahead of Trump’s Proposed Tariff on EU Goods

LONDON, May 23 (Reuters) – Oil prices declined nearly 2% on Friday, marking the first weekly drop in three weeks. This downturn follows U.S. President Donald Trump‘s recommendation to impose a 50% tariff on goods from the European Union.

Brent crude futures fell $1.03, or 1.6%, to $63.41 a barrel by 1211 GMT. U.S. West Texas Intermediate crude futures were down $1.07, or 1.8%, sitting at $60.13. Prices have now fallen for four straight sessions, influenced by rising expectations of increased oil output from the OPEC+ group in the upcoming months.

President Trump stated on Friday that he would implement the tariff starting June 1, citing difficulties in trade negotiations with the EU. This announcement comes as a new challenge for oil markets trying to maintain stability.

The OPEC+ group, which includes members of the Organization of the Petroleum Exporting Countries and its allies led by Russia, is set to meet next week. They are expected to decide on an output increase of 411,000 barrels per day for July. Earlier this month, reports indicated that OPEC+ may unwind the remaining 2.2 million barrels per day voluntary production cut by the end of October, having already raised output targets by about 1 million barrels per day for April, May, and June.

The impact of these developments is already reflected in the market, leading to uncertainty about future oil prices.