Oil prices remained steady on Thursday as markets evaluated the impact of new U.S. tariffs, while concerns over global supply kept prices near one-month highs.
Brent crude futures dipped slightly by 14 cents to $73.65 per barrel, while U.S. West Texas Intermediate crude futures fell 11 cents to $69.54.
The market saw a boost on Wednesday, with oil prices rising around 1% to their highest levels since February. The increase came despite declines in equity markets, as traders focused on U.S. tariffs against Venezuela and reports of lower crude and fuel inventories in the U.S.
President Donald Trump announced a new 25% tariff on potential buyers of Venezuelan crude, adding to the geopolitical tensions affecting the oil market. Following this announcement, India’s Reliance Industries, which operates the world’s largest refining complex, confirmed it would stop importing Venezuelan oil.
Investors are closely watching the next steps of the U.S. administration, as tariffs create uncertainty around economic growth while also raising concerns about potential supply disruptions. In addition to the Venezuelan crude tariffs, the U.S. government has announced a 25% tariff on imported cars and light trucks, which will take effect next week.
Some market observers believe this could actually support oil demand, as higher prices for new vehicles may slow the transition to more fuel-efficient models, keeping older, less efficient cars on the road for longer. However, broader uncertainty surrounding U.S. trade policy and potential tariff conflicts continues to weigh on oil demand, with expectations that prices may not return to early 2025 levels.
