Brent Crude Drops 3% Amid Global Trade Tensions and New U.S. Tariffs

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Oil prices fell by $2 on Thursday after U.S. President Donald Trump unveiled new reciprocal tariffs on trading partners, raising concerns that a potential global trade war could reduce crude demand.

Brent crude dropped by $1.97, or 2.63%, to $72.98 per barrel at 0033 GMT, while U.S. West Texas Intermediate crude slid by $1.98, or 2.76%, to $69.73. Trump's announcement on April 2, dubbed "Liberation Day," introduced new tariffs that could disrupt global trade.

While both benchmarks had risen earlier in the session, they reversed course after Trump's press conference, where he revealed a 10% baseline tariff on all imports to the U.S., along with higher duties on several major trading partners.

Bjarne Schieldrop, chief commodities analyst at SEB, noted that the tariffs are expected to hurt trade and economic growth, which could, in turn, slow oil demand, though the full impact remains uncertain.

However, U.S. oil, gas, and refined product imports were excluded from the new tariffs, the White House confirmed.

Concerns about inflation, slower economic growth, and heightened trade tensions weighed on oil prices. Additionally, the Energy Information Administration's report on Wednesday revealed an unexpected rise in U.S. crude inventories by 6.2 million barrels, compared to analysts' predictions of a 2.1 million barrel decline.

 

 

 

 

 

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