Oil settles down over 3% as investors reassess Trump's tariff flip
Oil prices settled more than $2 per barrel lower on Thursday, wiping out the last session's rally, as investors reassessed a planned pause in sweeping U.S. tariffs and focus shifted to a deepening trade war between Washington and Beijing.
U.S. West Texas Intermediate crude futures fell $2.28, or 3.7%, to settle at $60.07 per barrel. Brent crude futures fell $2.15, or 3.3%, to $63.33 a barrel.
Both contracts had gained more than $2 a barrel on Wednesday after U.S. President Donald Trump paused the heavy tariffs he had announced against dozens of U.S. trading partners a week ago, marking an abrupt U-turn less than 24 hours after the levies took effect.
At the same time, however, Trump also raised tariffs against China. U.S. tariffs on Chinese imports now total 145%, the White House told media on Thursday.
China announced an additional import levy on U.S. goods, imposing an 84% tariff.
Higher tariffs against China are likely to prompt lower U.S. crude imports by Beijing, backing up supply and raising U.S. storage levels, trading advisory firm Ritterbusch and Associates told clients on Thursday.
U.S. crude oil exports to China fell to 112,000 barrels per day (bpd) in March, nearly half of last year's 190,000 bpd, data from vessel tracker Kpler showed.
U.S. crude stockpiles rose by 2.6 million barrels last week, government data showed on Wednesday, almost double the increase of 1.4 million barrels analysts projected in a Reuters poll.
Source : Reuters
