Oil prices continued to decline in Asian trade on Thursday trading as uncertainty loomed over the potential impact of United States President Donald Trump's proposed tariffs.
By 2:30 pm AEDT (3:30 am GMT), Brent crude futures dropped $0.21, or 0.3%, to US$78.79 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude fell $0.19, or 0.3%, to $75.25 per barrel.
This marks the fifth consecutive session of losses for Brent futures, which settled at $79.00 in the previous session, and the fourth straight session of declines for WTI, which closed at $75.44 on Wednesday.
The market's bearish sentiment stems from President Trump's announcement of additional tariffs as part of his sanctions against Russia unless the country reaches a deal to end its war in Ukraine. Trump also signalled that these tariffs could extend to "other participating countries".
Further escalating trade tensions, Trump pledged to impose tariffs on multiple nations, including a 25% duty on imports from Canada and Mexico and additional levies on the European Union. He also revealed plans to discuss a 10% punitive tariff on Chinese goods, citing concerns over fentanyl being shipped to the U.S. from China.
Meanwhile, ANZ analysts said in a note to clients: “Concerns over the impact of a trade war were offset by signs of stronger demand. The head of Saudi Aramco said that China is still driving growth in global demand for crude oil, dismissing concerns about a peak in consumption.”
