Oil prices continued to decline on Thursday, as US President Donald Trump’s 25% tariff on steel and aluminum imports took effect, coupled with ongoing talks for a ceasefire in the Russia-Ukraine war.
Brent crude, the international benchmark, fell by 0.19%, trading at $70.56 per barrel at 10:50 a.m. local time (0750 GMT), down from $70.70 at the previous session’s close.
The US benchmark, West Texas Intermediate (WTI), dropped by 0.05%, closing at $67.40 per barrel, compared to $67.44 at the end of the previous trading day.
The introduction of the 25% tariff on steel and aluminum imports has raised concerns about a potential slowdown in the US economy, the world’s largest oil consumer, which could reduce demand for oil.
In addition to these tariffs, Trump, who has already imposed separate tariffs on Canada, Mexico, and China, plans to implement “reciprocal” tariffs on other trading partners, including the EU, Brazil, and South Korea, starting on April 2.
The EU has responded by retaliating against these tariffs, with EU Commission President Ursula von der Leyen announcing measures worth €26 billion in response.
Canada has also imposed a 25% tariff on imports totaling 29.8 billion Canadian dollars ($20.7 billion) in retaliation for the US tariffs on steel and aluminum.
Experts warn that these reciprocal tariff actions could slow economic growth and reduce energy demand in the short term. There are also concerns that this could lead to a new trade war in the future.
Meanwhile, Trump’s announcement that Ukraine had agreed to a 30-day temporary ceasefire with Moscow during peace talks in Jeddah, Saudi Arabia, added further pressure on oil prices. Trump stated that the ceasefire deal could be a significant step toward ending the war in Ukraine, claiming it would be “80% of the way” to resolving the conflict.
He also mentioned plans to discuss the ceasefire with Russian President Vladimir Putin later this week.
Related Topics:
- The U.S. Plans to Tighten Restrictions on Iran’s Oil Exports
- Whitecap and Veren Combine to Form a US$10-Billion Canadian Light Oil Producer
- Iran-China Oil Trade Continues Despite U.S. Sanctions