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Oil Prices Rise Analysis of Crude Supply, New US Tariffs
Oil Price Increase:
During Thursday’s trading sessions, Brent crude futures increased by 24 cents (0.33%) to settle at $74.03 per barrel, while US crude futures rose by 27 cents (0.39%) to reach $69.92 per barrel, according to Reuters.
Risk Assessment and Tariff Concerns:
This rise follows an approximate 1% increase recorded on Wednesday, amid heightened concerns over escalating trade tensions. In a controversial move, US President Donald Trump announced plans to impose a 25% tariff on imported cars and light trucks starting next week, with additional tariffs on auto parts set to take effect from May 3.
Impact on the Oil Market:
According to chief analyst Phil Flynn of Price Futures Group, tariff-related fears currently represent the biggest challenge for the oil market, potentially slowing down demand.
Implications for Oil Imports:
On Tuesday, the US President also decided to impose a 25% tariff on Venezuelan crude purchases, prompting Reliance Industries—the operator of the world’s largest refining complex in India—to cease its imports of Venezuelan crude following Trump’s announcement.
Monitoring US Crude Supplies:
US inventory data revealed a significant drop of 3.3 million barrels in crude stocks last week, far exceeding the forecasted decline of approximately 956,000 barrels, while new unemployment claims in the United States also experienced a notable decrease.
