Oil prices eased as pending US reciprocal tariffs set investors on edge
Market unease deepened ahead of the US government’s scheduled implementation of reciprocal tariffs on 2 April, raising the prospect of slower economic growth and weaker energy demand.
Oil prices softened on Tuesday, 1 April 2025, as concerns over impending US reciprocal tariffs weighed on sentiment, eclipsing concerns over recent and ongoing supply-side disruptions.
Brent crude futures slipped 28 cents to $74.49 a barrel.
West Texas Intermediate (WTI) crude fell by the same margin to $71.20.
Market unease deepened ahead of the US government’s scheduled implementation of reciprocal tariffs on 2 April, raising the prospect of slower economic growth and weaker energy demand. Analysts noted that while the fresh restrictions could disrupt supply flows from Mexico, Venezuela, and Canada, demand pressures might outweigh such potential constraints.
Nonetheless, supply-side developments remained under watch. Under pressure from OPEC+, Kazakhstan prepared to curb excess output by shutting two of three moorings at its main export terminal. Meanwhile, industry sources indicated that repairs at the Caspian Pipeline Consortium could extend beyond a month, potentially restricting flows further.
Written by: Derek Yong