Oil prices remained flat during Asian trade on Tuesday, hovering at three-week highs as markets balanced concerns over new United States tariffs on countries purchasing Venezuelan oil against potential economic slowdowns from broader trade levies on industries such as automobiles.
By 3:35 pm AEDT (4:35 am GMT), Brent crude futures held steady at US$73.01 per barrel, while U.S. West Texas Intermediate (WTI) crude remained unchanged at US$69.11 per barrel.
Both crude benchmarks gained 1.2% on Monday following U.S. President Donald Trump's announcement of a 25% tariff on nations importing oil and gas from Venezuela.
ANZ analysts highlighted the impact of the new tariffs:
"Crude oil prices found some support after Trump said he will apply 25% tariffs on nations purchasing oil and natural gas from Venezuela, citing migration and criminal gangs in the U.S."
They also pointed to uncertainties surrounding OPEC production cuts, as some members who previously committed to compensatory reductions may not follow through.
“There is also growing speculation that OPEC members that promised additional compensation cuts due to overproducing will fail to deliver on that promise. They have the potential to offset the production hikes the group has agreed to deliver in April.”
Meanwhile, Trump reiterated that automobile tariffs are coming soon, though he suggested that some of the proposed trade levies set for 2 April could be postponed, with certain countries potentially receiving exemptions.
Investors were also closely watching diplomatic efforts to end the war in Ukraine, as U.S. and Russian officials concluded a day-long meeting on Monday, discussing a narrow ceasefire proposal at sea between Kyiv and Moscow as part of broader peace talks.
