LONDON: Oil prices were steady on Thursday as markets assessed new U.S. tariffs, while concerns about global supply kept prices near one-month highs.
Brent crude futures fell 14 cents, or 0.2%, to $73.65 a barrel by 1158 GMT. U.S. West Texas Intermediate crude futures dropped 11 cents, or 0.2%, to $69.54.
On Wednesday, oil prices rose by around 1% to their highest since February.
PVM analyst Tamas Varga said oil had ignored falling equity markets on Wednesday and had firmed on the back of U.S. tariffs against Venezuela and lower U.S. crude and fuel inventories.
U.S. President Donald Trump on Tuesday imposed new 25% tariffs on potential buyers of Venezuelan crude.
India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports following the tariff announcement, sources said on Wednesday.
“The oil market is a bit in a wait and see policy on the next step of the Trump administration. There are risks on economic growth coming from tariffs, but at the same time other policies from the Trump administration could remove oil barrels from the market,” UBS analyst Giovanni Staunovo said.
Oil prices climb on supply worries
Traders were also assessing the impact on oil demand from Trump’s latest announcement of a 25% tariff on imported cars and light trucks from next week.
“The news around Trump’s tariffs on autos may actually turn out to be a net positive for crude oil because the rise in new car prices from tariffs will mean it slows down the switch to newer, more fuel-efficient models,” said Tony Sycamore, a market analyst at IG.
Asian bank DBS does not expect prices to return to the higher levels seen in early 2025 as uncertainty over U.S. policy and the prospect of tariff wars weigh on demand, the bank’s energy sector team lead Suvro Sarkar said.
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