Oil Holds Near Six-Month Low as Tariffs Hamper Demand Outlook
Oil held near a six-month low as President Donald Trump’s sweeping tariffs have stoked a multi-pronged trade war, raising concerns about the outlook for energy demand.
West Texas Intermediate traded near $66 a barrel after falling more than 5% over the past four sessions. Brent closed below $70 on Wednesday. Trump delayed some levies on automakers and considered exemptions for certain agricultural products, but still went ahead with reciprocal tariffs on April 2.
Oil has fallen nearly a fifth since mid-January as Trump’s trade policies have roiled global markets, with Canada and China responding with their own actions on U.S. products. OPEC+ has also signaled plans to start restarting halted production in April, adding to bearish headwinds.
U.S. Gulf Coast refineries are cutting crude orders from Mexico, which plans to announce its response to Trump’s tariffs on Sunday. The Canadian province of Alberta will build a pipeline to the coast to boost oil shipments to Asia and Europe, its prime minister said.
Some market watchers are rethinking their price forecasts. Morgan Stanley cut its Brent forecast for the end of the year, and expects the benchmark to trade in the $60s during the second half.
Source: Bloomberg
