Oil Steady, Market Wary of New US Tariffs
World oil prices remained stable on Friday morning despite weakening more than 1% in the previous session. Brent edged up 0.26% to $71.89 per barrel, while WTI strengthened 0.29% to $69.46 per barrel. Weekly, Brent is headed for a 5% gain, and WTI has the potential to post a 6.6% gain.
Investors are currently assessing the impact of new tariffs announced by US President Donald Trump, which took effect on August 1. Trump signed an executive order imposing tariffs ranging from 10% to 41% on dozens of countries, including Canada, India, and Taiwan, that failed to reach a trade deal. In contrast, countries such as the European Union, Japan, South Korea, and the United Kingdom were able to escape these tariffs.
One factor supporting oil prices this week is the potential disruption to supply flows due to Trump's threat to impose 100% secondary tariffs on countries still buying Russian oil. This could put Russia's estimated 2.75 million barrels per day of oil exports at risk, especially since China and India are the world's second- and third-largest consumers.
However, there are also concerns that these new tariffs could slow global economic growth, which could actually reduce oil demand. The latest US inflation data shows that domestic prices have already begun to rise due to the tariffs, adding pressure on energy consumption in the world's largest economy and number one oil consumer. (ayu)
Source: Newsmaker.id
