NEW YORK: Oil prices held near a one-week low on Wednesday as the market considers how US President Donald Trump’s proposed tariffs could affect global economic growth and demand for energy. Brent futures fell 19 cents, or 0.2%, to $79.10 a barrel by 11:04 a.m. EST (1604 GMT), while US West Texas Intermediate (WTI) crude was 25 cents, or 0.3% lower, at $75.58.
That puts Brent down for a fifth day in a row for the first time since September and WTI down for a fourth day in a row for the first time since November. Both crude benchmarks were on track for their lowest closes since Jan. 9.
“As more details emerge regarding energy production and trade agreements, traders will assess the balance between economic growth, energy security, and policy risks,” said Dilin Wu, research strategist at Pepperstone.
Trump said his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.
He also vowed duties on European imports, without providing further detail.
“The oil market’s attention is slowly turning away from US sanctions against Russia towards President Trump’s potential trade policy,” said ING analysts, adding that the energy complex has come under pressure with the growing threat of tariffs.
In Europe, French President Emmanuel Macron and German Chancellor Olaf Scholz sought to project unity at a meeting in Paris, as Europe struggles to respond with one voice to threats of tariffs from the United States.
One factor that should limit a decline in crude price was the US dollar, which slid to a one-month low against a basket of other currencies as Trump’s plans for tariffs kept financial markets guessing.
A weaker US currency could increase demand for energy by making dollar-priced commodities like oil less expensive for buyers using other currencies.
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