Oil Slips Further as Tariff Uncertainty Clouds Demand Outlook

Image Credit: Reuters

Oil prices declined in early Thursday trading, continuing a losing streak as uncertainty looms over how U.S. President Donald Trump’s proposed tariffs on multiple countries might affect global economic growth and energy demand.  

Brent crude futures slipped by 23 cents (0.3%) to $78.79 per barrel as of 01:35 GMT, while U.S. West Texas Intermediate (WTI) dropped 18 cents (0.2%) to $75.26 per barrel. This follows Brent's settlement at $79.00 in the previous session, marking five consecutive days of losses. Similarly, WTI had settled at $75.44, its fourth straight day of declines.  

Trump recently stated he would expand his tariff threats to include additional sanctions on Russia unless a deal is reached to end its war in Ukraine. He also indicated plans to impose tariffs on other countries, including a 25% duty on imports from Canada and Mexico and potential 10% tariffs on China due to concerns over fentanyl shipments to the U.S. from there.  

In the energy market, a Reuters poll indicated that U.S. crude oil stockpiles likely fell by 1.6 million barrels in the week ending January 17. However, gasoline inventories were projected to rise by 2.3 million barrels, with distillate stocks expected to increase by 300,000 barrels.  

The American Petroleum Institute and the Energy Information Administration are set to release inventory reports on Thursday, delayed by a day due to the Martin Luther King Jr. Day holiday earlier in the week.

Paraphrasing text from "Reuters" all rights reserved by the original author.