WTI declines as markets evaluate the impact of US President Donald Trump's auto tariffs.
India’s Reliance Industries, the world’s largest Oil refinery, is reportedly planning to halt Venezuelan oil imports.
President Trump has signed an order imposing a 25% tariff on auto imports, further intensifying global trade tensions.
West Texas Intermediate (WTI) crude Oil price halts its three-day rally, trading around $69.20 per barrel during European hours on Thursday. Crude prices edge lower as markets assess the impact of US President Donald Trump's auto tariffs, alongside ongoing concerns over global supply disruptions due to US sanctions on buyers of Venezuelan and Iranian Oil.
In response to the latest US tariff announcement, India’s Reliance Industries, operator of the world's largest refining complex, reportedly plans to halt Venezuelan Oil imports, further amplifying concerns over global supply stability.
President Trump signed an order imposing a 25% tariff on auto imports, further escalating global trade tensions. The tariffs are set to take effect on April 2, with collection beginning the following day. Despite this, some analysts believe the tariffs could indirectly support Oil prices.
Reuters cited Tony Sycamore, a market analyst at IG, who suggested that "the rise in new car prices from tariffs will slow the shift to newer, more fuel-efficient models," potentially sustaining demand for crude Oil.
On Wednesday, Oil prices gained around 1%, driven by signs of strong demand and tightening global supply. The US Energy Information Administration (EIA) reported that crude stockpiles fell by 3.34 million barrels last week—the largest decline since December—while gasoline inventories also dropped.
US agreements with Russia and Ukraine, which could lead to a potential easing of US sanctions on Russian Oil, have put downward pressure on Crude prices. Additionally, concerns over a possible OPEC+ (Organization of the Petroleum Exporting Countries and its allies) supply increase in May may slightly weigh on the market. Meanwhile, Iraq is planning to expand its oil production capacity beyond 6 million barrels per day (bpd) by 2029.
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