Oil prices fell into a negative area after a dollar increase in trade after settling on Wednesday as US President Donald Trump announced a mutual tariff on business partners, worrying that a global trade war could reduce the demand for rawness.
Brent Futures settled 46 cents, or 0.6%, $ 74.95 per barrel, while US West Texas Intermediate Crude Futures obtained 51 cents, or 0.7%to be organized at $ 71.71.
The US futures rose with one dollar and then became negative during Trump’s press conference on Wednesday afternoon, in which they announced tariffs on business partners including the European Union, China and South Korea.
Trump has postponed April 2 as “liberation day” for weeks, to bring new duties that can rattle the global trading system.
A chart listing countries and tariffs that Trump showed during his announcement did not expand the tariffs on Canada and Mexico. Canada exports about 4 million barrels per day for its crude oil to the United States.
Trump’s tariff policies can increase inflation, slow economic growth and trade disputes, the possibilities that have limited oil price benefits.
Ole Hansen, head of commodity strategy at the Saxo Bank, said, “Crude prices have stopped last month’s rally, with Brent getting some resistance above $ 75, Tram’s tariff declaration has focused on its possible negative effects on the lack of restrictions in supply and development and demand.”
Mexico’s comments reduced some concerns about a trade war between the two countries after the Mexican President Claudia Shinbam, said on Wednesday that Mexico has not planned to impose a tight-for-tat tariff on the United States.
Trump has also threatened to impose secondary tariffs on Russian oil, and on Monday he strictly stricken restrictions on Iran as part of his administration’s “maximum pressure” campaign to cut his exports.
Adding to the world’s second largest oil exporter Russia to a complex global supply photo, banned another major oil export route on Wednesday, suspended a moist on the Black C port of Novorosis a day after restricting loading from a major Caspian pipeline.
Russia produces about 9 million barrels of oil in a day, or just in the tenth of global production. Its ports also do oil ships from neighboring Kazakhstan.
Meanwhile, investors on Wednesday removed most of the US government’s crude inventory data from recession. The American crude inventory last week posted a surprisingly large construction of about 6.2 million barrels, showing the data of energy information administration. (EIA/S)
UBS analyst Geyoani Stanovo said, “The report was a recession in my view, with large raw inventions and total petroleum inventories growing.” “But the market took it neutrally, as raw construction is inspired by a sharp increase in Canada’s crude imports, beyond fear of the introduction of new tariffs.”
(Except for the headline, the story has not been edited by NDTV employees and is published by a syndicated feed.)
