Oil prices continue to fall due to uncertainty over the impact of Trump’s tariffs
23 January 10:15
On Thursday, oil prices declined in Asian trade, continuing to fall amid uncertainty over how US President Donald Trump’s proposed tariffs and energy policy will affect global economic growth and energy demand. This was reported by Reuters, according to Komersant ukrainskyi.
Brent crude oil futures fell 38 cents, or 0.5%, to $78.62 per barrel as of 9 a.m. Kyiv time, the sixth consecutive day of decline. WTI oil futures fell for the fifth day in a row, down 39 cents, or 0.5%, to $75.05.
Phillip Nova senior market analyst Priyanka Sachdeva said:
“Oil markets have given up some of their recent gains due to mixed factors. Among the key ones are expectations of increased production in the US as a result of Trump’s drilling policy and the easing of geopolitical tensions in Gaza, which eases fears of further supply disruption from key production regions.”
She added that the economic impact of the US tariffs could further restrain the growth of global oil demand.
Читайте нас у Telegram: головні новини коротко
Trump’s energy policy
The US President said that he would impose new duties in addition to sanctions threats against Russia if the country does not reach an agreement to end the war in Ukraine. He also emphasized that these duties could be applied to “other participating countries.”
In addition, he promised to impose tariffs against the European Union, impose 25 percent duties on Canada and Mexico, and said that his administration is discussing a 10 percent punitive duty on China for supplying fentanyl to the United States.
On Monday, Trump also declared an energy emergency. This should give him the authority to reduce environmental restrictions on energy infrastructure and projects, as well as ease permitting procedures for new transmission lines and pipelines.
Calvin Wong, Senior Market Analyst at OANDA, said:
“Further potential undulations in the oil market are expected in the near future due to the Trump administration’s uncertainty over trade tariff policy and the expected increase in US oil supply due to the US’ desire to become a leading oil exporter.”
According to sources citing figures from the American Petroleum Institute, U.S. oil inventories increased by 958,000 barrels last week. In addition, gasoline stocks increased by 3.23 million barrels, and distillate stocks by 1.88 million barrels.