Oil prices fell sharply on Thursday after United States President Donald Trump announced new reciprocal tariffs on major trading partners, heightening concerns that escalating trade tensions could weaken global demand for crude.
By 3:05 pm AEDT (4:05 am GMT), Brent crude futures had declined US$1.61, or 2.2%, to $73.34 per barrel, while U.S. West Texas Intermediate (WTI) crude for June delivery fell $1.63, or 2.3%, to $69.60 per barrel.
Trump, referring to 2 April as "Liberation Day", introduced a 10% baseline tariff on all imports to the U.S., with even higher duties imposed on several of the country’s largest trading partners.
The announcement reversed the gains oil prices had made in the previous session, sending benchmarks lower after the press conference.
However, the White House later clarified that imports of oil, gas, and refined products would be exempt from the new tariffs, helping to cushion further declines.
Despite the exemption, concerns remain that Trump’s tariff measures could stoke inflation, slow economic growth, and intensify global trade disputes - all factors that could pressure energy markets.
The downward momentum was reinforced by data from the U.S. Energy Information Administration (EIA), which reported an unexpected increase in crude inventories. Commercial crude oil inventories rose by 6.2 million barrels last week, a stark contrast to analyst expectations for a 2 million-barrel decline.
