New York: Oil prices fell on Friday amid concerns that demand could be impacted by tariffs, but they are on track for a third weekly gain amid expectations of a global supply shortage after the United States placed further pressure on Venezuelan and Iranian oil trade. Brent crude futures fell 31 cents, or 0.4 percent, to $73.72 a barrel, marking their first decline after seven consecutive daily gains. US West Texas Intermediate (WTI) crude futures fell 33 cents, or 0.5 percent, to $69.59 a barrel.

According to National Iraqi News Agency, the downward price correction on Friday reflected a broader sell-off of riskier assets after the latest round of U.S. tariffs sparked investor fears of a full-blown trade war. However, both crudes have risen about 2 percent since the start of the week and about 7 percent since hitting multi-month lows in early March.

U.S. President Donald Trump announced on Monday the imposition of new 25 percent tariffs on potential buyers of Venezuelan crude oil, days after U.S. sanctions
targeted China’s imports from Iran. This exacerbated buyer uncertainty and halted Venezuelan oil trade with China, its largest buyer.

Oil also received support from signs of improving demand in the United States, the world’s largest oil consumer, with crude inventories falling more than expected. U.S. Energy Information Administration data showed that U.S. crude inventories fell by 3.3 million barrels to 433.6 million barrels in the week ending March 21.