US Tariffs Pressure Oil Prices
Brent oil prices corrected in trading on Friday (July 24th) after briefly breaking through US$100 per barrel in the previous session. Brent for September delivery fell to US$96.68 per barrel, while WTI weakened 3.5% to US$88.93 per barrel.
The decline in oil prices was triggered by concerns about the global demand outlook after the United States reimposed import tariffs. This policy is considered to have the potential to depress trade activity and global economic growth.
The US government will impose tariffs of 10% to 12.5% on imports from most major trading partners. This sentiment shifted market attention from supply risks to potential weakening energy consumption.
Despite the correction, Brent is still heading for a weekly gain of more than 10%. Oil prices remain supported by the Middle East conflict and Houthi attacks on tankers in the Red Sea.
Supply risks have also increased due to traffic disruptions in the Strait of Hormuz and a Ukrainian attack on the Caspian Pipeline Consortium terminal on Russia's Black Sea coast. The terminal is a key route for Kazakhstan's oil exports.
Oil prices have the potential to remain volatile as the market weighs the risks of falling demand and supply disruptions. As long as the Middle East conflict remains unabated, selling pressure is expected to be limited, although new US tariffs cast a shadow over the global economic outlook. (arl)
Source: Newsmaker.id
