The oil prices declined in the global commodities market on Tuesday ahead of April 2 reciprocal tariffs implementation. The uncertainties about U.S protectionist stance has triggered reduce global economic growth forecast and analysts expect inflows to worsen due to trade war. With negative impacts on demand and supply, the US President Donald Trump has threaten to implement 25% tariffs on countries importing oil and gas from Venezuela. Trump prepares to announce reciprocal tariffs on April 2, which he calls ‘Liberation Day’.
Brent crude, decreased by around 0.40% trading at $74.47 per barrel, down from $74.77 at the previous session’s close. The US benchmark, West Texas Intermediate (WTI) fell by about 0.41%, settling at $71.18 per barrel, compared to its prior session close of $71.48. Trump’s tariff plans remain a major source of global uncertainty, with fears that countermeasures from other countries could deepen trade tensions. Concerns over potential supply disruptions from rising global tensions tempered the gains in oil prices. Meanwhile, Trump said Monday that he wants to see his Russian counterpart Vladimir Putin make a deal to end the Ukraine war.
‘I want to see him make a deal so that we stop Russian soldiers and Ukrainian soldiers and other people from being killed,’ Trump told reporters in the Oval Office. He said he does not want to impose secondary tariffs on Russia’s oil, adding ‘you know, (that’s) something I would do if I thought he wasn’t doing the job.’ On Sunday, Trump threatened Iran with unprecedented bombing if it did not agree to engage with Washington in negotiations over its nuclear program, marking the most explicit warning of military action since he assumed office in January. ‘If they don’t make a deal there will be bombing. It will be bombing the likes of which they have never seen before,’ Trump said during an interview with NBC News.
Crude oil prices rallied following President Trump’s indications of potential US measures to curtail Russian crude oil shipments, Daniel Hynes, a senior commodity strategist at the Australia and New Zealand Banking Group, in a note.
“The warning comes amid frustrations in getting Russia to agree to a ceasefire with Ukraine. Trump said that he was ‘very angry’ at Russian President Vladimir Putin and would consider ‘secondary tariffs’ to limit the country’s oil exports,’ Hynes added. Any impact on such a move would be driven by the reaction from Russia’s biggest buyers of its crude, China and India. Both countries have taken up the slack amid reluctance by European and US traders to handle its crude,’ he added. Trump also said he’s considering punishing Iran with unspecified secondary tariffs and vowed to inflict real pain if the Houthi militia group does not halt attacks on US vessels.
Crude oil prices drop slightly ahead of Trump ‘Liberation Day’
