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Summary
• Tariffs on Venezuelan oil buyers remain supportive of prices
• Markets mixed on impact of Trump auto tariffs
• Prices seen unlikely to return to early 2025 highs, some analysts say
(Reuters) – Oil prices were steady on Thursday as markets assessed new U.S. tariffs, while concerns about global supply kept prices near one-month highs.
Brent crude futures fell 23 cents, or 0.3%, to $73.56 a barrel by 0912 GMT. U.S. West Texas Intermediate crude futures dropped 21 cents, or 0.3%, to $69.44.
On Wednesday, oil prices rose by around 1% to their highest since February.
PVM analyst Tamas Varga said oil had ignored falling equity markets on Wednesday and had firmed on the back of U.S. tariffs against Venezuela and lower U.S. crude and fuel inventories.
U.S. President Donald Trump on Tuesday imposed new 25% tariffs on potential buyers of Venezuelan crude.
India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports following the tariff announcement, sources said on Wednesday.
“There have been fundamental justifications for the recent bounce in oil, yet one cannot help but conclude that it is U.S. trade policy that will be the ultimate and anxious judge of the direction of the next $10-$15/bbl move,” Varga added.
Asian bank DBS does not expect prices to return to the higher levels seen in early 2025 as uncertainty over U.S. policy and the prospect of tariff wars weigh on demand, the bank’s energy sector team lead Suvro Sarkar said.
Traders were also assessing the impact on oil demand from Trump’s latest announcement of a 25% tariff on imported cars and light trucks from next week.
“The news around Trump’s tariffs on autos may actually turn out to be a net positive for crude oil because the rise in new car prices from tariffs will mean it slows down the switch to newer, more fuel-efficient models,” said Tony Sycamore, a market analyst at IG.
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