Oil Trims Losses as Traders Weigh Demand Impact of Tariffs
Oil edged up from its lowest close in six months as markets grappled with an uncertain demand outlook following President Donald Trump’s sweeping tariffs on major U.S. trading partners.
Brent rose near $70 a barrel after falling more than 6% over the past four sessions, while West Texas Intermediate neared $67. 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 been falling since mid-January as Trump’s trade policies roiled global markets, with Canada and China responding with their own actions on U.S. products. OPEC+ has also signaled plans to start reviving idled production in April, adding to the bearish drag.
“Import tariffs are ultimately inflationary and affect consumption patterns, especially diesel, which is highly correlated with industrial demand,” said June Goh, senior oil market analyst at Sparta Commodities. “The uncertainty of retaliatory and reciprocal tariffs adds further uncertainty.”
That matched the decline projected by the industry-funded American Petroleum Institute. Brent for May delivery rose 0.6% to $69.72 a barrel as of 1:01 p.m. in Singapore. WTI for April delivery rose 0.6% to $66.72 a barrel.
Source: Bloomberg
