Oil prices in the early Asian trading session on Friday witnessed a further decline and were set for the worst week in months due to the introduction of new tariffs by U.S. President Donald Trump. This move has raised concerns about a potential global trade conflict that could impact oil demand.

Brent futures dropped by 0.4%, reaching $69.83 per barrel, while U.S. West Texas Intermediate crude futures decreased by 0.5% to $66.63. Both Brent and WTI were heading for their largest weekly losses in terms of percentage since specific weeks in October and January, respectively.

The sentiment remained bearish as the Organisation of Petroleum Exporting Countries and their allies (OPEC+) decided to accelerate their oil output increase plan. OPEC+ now aims to release 411,000 barrels per day into the market in May, up from the 135,000 bpd initially planned.

Analysts from ING mentioned that this adjustment is expected to lead to a surplus in the oil market this year. The increased OPEC+ supply may result in more medium sour crude oil and a broader Brent-Dubai spread, with the latter experiencing an unusual discount for a significant part of the year.

Following Trump's announcement of new tariffs during a news conference labeled "Liberation Day," oil prices began to drop. Although oil, gas, and refined product imports were not subject to the new tariffs, concerns remain about potential inflation, slower economic growth, and escalating trade conflicts affecting oil prices.