Oil prices eased on Thursday as the latest tariff announcements by U.S. President Donald Trump were perceived by market participants as a threat to global economic growth, however signs of strong U.S. gasoline demand limited losses.
Brent crude futures were down 3 cents at $70.16 a barrel by 0401 GMT. U.S. West Texas Intermediate crude lost 6 cents to $68.32 a barrel.
On the demand side, macro uncertainty has led to a more cautious buying environment, particularly in Asia, said analytics firm Kpler in a note, while noting that geopolitical risk premiums have faded with the Israel-Iran truce holding.
On Wednesday, Trump threatened Brazil, Latin America's largest economy, with a punitive 50% tariff on exports to the U.S., after a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva.
Earlier, Trump announced plans about tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen of letters issued earlier in the week including for powerhouse U.S. suppliers South Korea and Japan.
As policymakers remain worried about the inflationary pressures from Trump's tariffs, only "a couple" of officials at the Federal Reserve's June 17-18 meeting said they felt interest rates could be reduced as soon as this month, the minutes released on Wednesday showed.
Higher interest rates make borrowing more expensive and reduce demand for oil.
Providing some support to prices, U.S. crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday. Gasoline demand rose 6% to 9.2 million barrels per day last week, the EIA said.
Global daily flights were averaging 107,600 in the first eight days of July, an all-time high, with flights in China reaching a five-month peak and port and freight activities indicating 'sustained expansion' in trade activities from last year, J.P. Morgan said in a client note.
"Year to date, global oil demand growth is averaging 0.97 million barrels per day, in line with our forecast of 1 million barrels per day," the note said.
Additionally, there is doubt that the recent increase in production quotas announced by OPEC+ will result in an actual increase in production, as some members are already exceeding their quotas, said Tony Sycamore, an analyst at IG.
"And others, like Russia, are unable to meet their targets due to damaged oil infrastructure," he said.
OPEC+ oil producers are set to approve another big output boost for September, as they complete both the unwinding of voluntary production cuts by eight members and the United Arab Emirates' move to a larger quota.
Source: Investing.com
Oil prices were little changed on Monday as traders assess the impact of new European sanctions on Russian oil supplies while they also worry about tariffs possibly weakening fuel demand as Middle Eas...
Oil was little changed after its first weekly drop this month, with the focus on trade deal progress and the European Union's efforts to curb Russian energy exports. Brent crude held near ...
Oil prices edged higher on Friday (July 18th), heading for a slight weekly loss, as investors weighed new EU sanctions against Russia. Brent crude futures rose 50 cents, or 0.72%, to $70.02 a barrel ...
Oil headed for a back-to-back daily gain after US data showed the world's largest economy holding up despite the fallout from the Washington-led trade war, while market metrics pointed to near-term ti...
Oil prices were little changed on Friday after rising in the previous session as concerns drone attacks on northern Iraqi oil fields will cut supply vied with worries of potential demand declines amid...
Silver prices surged again after Fed Governor Christopher Waller reiterated his support for monetary policy easing in July, citing a weakening labor market and declining inflation risks.As of this writing, silver prices are at $38,461. Source:...
Gold prices rose on Monday (July 21st), supported by a weaker dollar as investors monitored developments in US trade talks and awaited potential market-moving catalysts, including the Federal Reserve's policy meeting scheduled for next week.As of...
The Hang Seng Index rose for the second day, climbing 0.7%, or 168.48 to 24,994.14 in Hong Kong. The index advanced to the highest closing level in at least a year. Alibaba Group Holding Ltd. contributed the most to the index gain, increasing...
Federal Reserve Governor Chris Waller, an advocate for an immediate interest rate cut, said on Friday he would accept the job as head of the U.S....
The case for a U.S. interest rate cut remains unresolved as Federal Reserve officials head into their policy meeting later this month, with data...
The S&P 500 briefly touched an all-time high before hovering flat in the afternoon session, while the Nasdaq dipped 0.2% as investors weighed...
Federal Reserve Governor Christopher Waller said concerns about private-sector hiring have fueled his call for the central bank to cut interest...