Oil nears one-month high amid trade war fears
As market investors evaluate the ramifications of increasing trade war concerns, the price of oil continues to hover close to its highest point in one month. On Thursday, oil prices remained stable as markets examined the consequences of freshly imposed tariffs by the United States. At the same time, traders continued to be concerned about the dynamics of global supply, which kept prices near to their highest levels in recent months.
As of 09:12 GMT, the average price of a barrel of Brent oil futures was $73.56. This is a decrease of 23 cents, which is comparable to 0.3 percent decrease. The price of West Texas Intermediate crude futures in the United States fell by 21 cents, which is equivalent to 0.3 percent, and ultimately settled at $69.44. On Wednesday, the price of oil reached its highest level since February, having grown by nearly one percent over the previous period.
Despite the fact that equity markets fell on Wednesday, PVM analyst Tamas Varga observed that oil prices continued to be resilient. This was backed by the application of tariffs by the United States on Venezuela as well as a fall in crude and fuel inventories in the United States. In a move that took effect on Tuesday, President Donald Trump of the United States imposed fresh tariffs of 25 percent on potential buyers of crude oil from Venezuela.
According to sources that were reported on Wednesday, Reliance Industries of India, which controls the largest refining complex in the world, is planning to stop importing oil from Venezuela as a result of the latest statement regarding tariffs. “There are essential reasons for the recent increase in oil prices; however, it is inevitable to assert that US trade policy will ultimately and anxiously determine the trajectory of the next $10-$15 per barrel shift,” according to Varga.
According to Suvro Sarkar, the head of the energy sector team at DBS, an Asian bank, the bank believes that prices will not return to the lofty levels that were witnessed in early 2025. This is due to the fact that uncertainty surrounding US policy and the possibility of tariff wars exert downward pressure on demand. The consequences that Trump’s recent proclamation of a 25 percent tariff on imported autos and light trucks, which is scheduled to take effect the following week, will have on the demand for oil were being evaluated by market participants when the announcement was made.
“The recent developments concerning the tariffs that President Trump has imposed on autos have the potential to result in a beneficial conclusion for crude oil. According to Tony Sycamore, a market analyst at IG, the increase in the price of new automobiles that is a direct result of these tariffs may slow down the transition to newer models that are more responsible with fuel consumption.
