Oil Prices Steady Near Highs As Risk Of Renewed Trade War Looms
Oil prices were steady on Thursday as markets assessed new U.S. tariffs, while concerns about global supply kept prices near one-month highs.
Brent crude futures fell 23 cents, or 0.3%, to $73.56 a barrel by 0912 GMT. U.S. West Texas Intermediate crude futures fell 21 cents, or 0.3%, to $69.44.
On Wednesday, oil prices rose about 1% to their highest since February.
PVM analyst Tamas Varga said oil had shrugged off Wednesday’s equity market plunge and had gained on U.S. tariffs on Venezuela and lower U.S. crude and fuel inventories.
U.S. President Donald Trump on Tuesday imposed new 25% tariffs on potential buyers of Venezuelan crude.
India’s Reliance Industries (NSE:RELI), the operator of the world’s largest oil refining complex, will stop importing Venezuelan oil after the tariff announcement, sources said on Wednesday.
“There is a fundamental justification for the recent surge in oil prices, but one cannot help but conclude that it is U.S. trade policy that will be the ultimate judge and decider of the next $10-$15/bbl move,” Varga added.
DBS Asia Bank does not expect prices to return to the higher levels seen in early 2025 as uncertainty over U.S. policy and the prospect of a tariff war weigh on demand, said Suvro Sarkar, head of the bank’s energy sector team.
Traders are also assessing the impact on oil demand from Trump’s recent announcement of a 25% tariff on imported cars and light trucks starting next week.
“The news around Trump’s tariffs on cars may actually be positive for crude as the increase in new car prices due to the tariffs will slow the shift to newer, more fuel-efficient models,” said Tony Sycamore, market analyst at IG.
Source: Investing.com
