Oil gains dampened as sweeping US tariffs eclipsed supply concerns
Although oil prices rose on Wednesday, gains faded later in the session as market attention shifted toward sweeping tariff hikes imposed by the US government on 180 nations.
Although oil prices rose on Wednesday, gains faded later in the session as market attention shifted toward sweeping tariff hikes imposed by the US government on 180 nations.
Brent crude futures edged 46 cents higher to $74.95 a barrel.
US West Texas Intermediate (WTI) crude inched up by 51 cents to $71.71 a barrel.
Prices initially found support from concerns over potential supply disruptions. Notably, Russia had suspended mooring at a Black Sea terminal just a day after curbing flows from a key Caspian pipeline. Meanwhile, investors recalled the US’s ramped-up sanctions campaign, including tougher measures on Iranian energy and threats of secondary tariffs on Russian crude.
However, sentiments shifted by afternoon, centring on US trade policy developments. The government confirmed a 10% base tariff on most imports, effective 5 April, with steeper rates of up to 50% on select economies—including the EU, China, and South Korea—set for implementation on the 9th. This sparked fears over the implications on global economic growth and fuel demand.
Written by: Derek Yong