Oil prices settle at lowest level of the year as tariff threat hurts demand outlook
Oil futures settled Tuesday at their lowest level of the year, with the economy and energy demand expected to take a hit from proposed U.S. tariffs on Canada and Mexico that may come into effect next week.
Prices for oil on Monday had finished a bit higher, finding support in the wake of a fresh round of U.S. sanctions aimed at curtailing Iran's crude exports.
West Texas Intermediate crude for April delivery fell $1.77, or 1.5%, to settle at $68.93 a barrel on the New York Mercantile Exchange.
April Brent crude, the global benchmark, lost $1.76, or 2.4%, at $73.02 a barrel on ICE Futures Europe. Based on the front-month contracts, Brent and WTI prices ended at their lowest since December, according to Dow Jones Market Data.
March gasoline shed 2.2% to $1.97 a gallon, while March heating oil lost 1.9% to $2.39 a gallon.
Natural gas for March delivery settled at $4.17 per million British thermal units, up 4.2%.
"The outlook for crude prices remains skewed to the downside, with uncertainty over future oil demand as the threat of U.S. tariffs casts a long shadow over global economic growth," said Ricardo Evangelista, senior analyst at ActivTrades.
On Monday, President Trump indicated that tariffs on Canada and Mexico would take effect next week after the conclusion of a 30-day pause. The tariffs would include a levy of 10% for Canadian energy products.
Meanwhile, the U.S. Treasury and State departments said Monday that they would impose sanctions on over 30 persons and vessels in multiple jurisdictions for their role in brokering the sale and transportation of Iranian petroleum-related products.
Source : MarketWatch
