KEY POINTS
- Oil prices rise as traders evaluate tariffs and supply tightness.
- Trump’s new tariffs on imports escalate trade war concerns.
- U.S. crude inventories fall, indicating tighter domestic supplies.
As traders evaluated tighter crude supplies and the possible effects of new U.S. tariffs on the world economy, oil prices marginally increased on Thursday.
Oil prices rise as traders assess tariff risks and supply concerns.
The price of Brent crude futures increased by 24 cents, or 0.3%, to $74.03 a barrel. U.S. West Texas Intermediate oil futures ended the day at $69.92, up 27 cents. Oil prices increased by almost 1% on Wednesday, hitting their highest points since February.
The dangers of a growing trade war were being assessed by traders. On Wednesday, U.S. President Donald Trump announced his intention to apply 25% tariffs on imported vehicles and light trucks, which would take effect the following week. Auto parts tariffs will go into effect on May 3.
According to Phil Flynn, senior analyst at Price Futures Group, “the biggest headwind for oil right now is concerns about tariffs, and tariffs might slow demand.”
Trump levied additional 25% tariffs on prospective purchasers of Venezuelan oil on Tuesday.
Reliance Industries halts Venezuelan oil imports due to tariffs.
Following the tariff announcement, sources stated on Wednesday that Reliance Industries, an Indian company that operates the largest refining complex in the world, would stop importing Venezuelan oil.
According to Reuters, Suvro Sarkar, head of DBS’s energy sector team, stated that the Asian bank does not anticipate prices to return to the higher levels saw earlier in 2025 due to uncertainties surrounding U.S. policy and the possible impact of tariff wars on demand.
U.S. oil stocks tightened last week, dropping 3.3 million barrels, more than the 956,000-barrel loss that was anticipated, according to data released Wednesday.
Meanwhile, last week saw fewer Americans submit new applications for unemployment insurance.
