Oil prices were slightly higher in Asian trading on Thursday, as markets balanced the potential economic drag from renewed United States tariff threats with signs of strong American fuel consumption.
By 3 pm AEST (5 am GMT) Brent crude futures added 11 cents or 0.2% to US$70.30 per barrel, while U.S. West Texas Intermediate (WTI) crude ticked up 6 cents or 0.1% to US$68.44 per barrel.
The restrained moves followed fresh tariff rhetoric from U.S. President Donald Trump, who on Wednesday threatened Brazil with a 50% levy on exports to the U.S.
This development added to a week of aggressive trade manoeuvres from the White House. Trump earlier announced planned tariffs targeting copper, semiconductors, and pharmaceuticals, and his administration issued tariff letters to several countries including the Philippines and Iraq.
These added to more than a dozen similar letters sent earlier in the week, including to major U.S. trading partners South Korea and Japan.
ANZ analysts also noted the administration’s renewed efforts to restrict Iranian oil exports. “The U.S. Treasury designated 22 foreign entities based in Hong Kong, the United Arab Emirates and Turkey for their roles in facilitating the sale of Iranian oil,” the bank noted.
These actions came amid escalating regional risks, including a recent Houthi rebel attack on a Liberian-flagged cargo vessel in the Red Sea, which raised fears that Iranian-backed groups could again target oil shipping lanes.
Meanwhile, the minutes from the U.S. Federal Reserve’s June meeting showed that only “a couple” of officials supported a rate cut as early as this month.
Higher interest rates typically weigh on oil demand by increasing borrowing costs and slowing economic activity.
On the data front, the Energy Information Administration (EIA) reported a 7.07 million barrel build in crude oil inventories, compared to expectations of a two-million barrel draw.
However, gasoline and distillate stockpiles declined more than expected, signalling continued strength in consumer fuel use.
