WTI crude dips near $75 amid uncertainty over Trump’s tariff proposals
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Market uncertainty weighs on crude prices
West Texas Intermediate (WTI) crude oil prices extended their decline on Thursday, falling to $74.90 during early European trading. The uncertainty surrounding the potential economic impact of President Donald Trump’s proposed tariffs and energy policies has continued to weigh on market sentiment.
Trump’s tariff proposals fuel market volatility
The crude market is grappling with the implications of Trump’s proposed 10% tariff on imports from China, the largest global oil importer. While the proposed tariff is less severe than the previously threatened 60%, its announcement has added another layer of market anxiety. Trump’s additional threats of 25% tariffs on imports from Canada and Mexico and punitive tariffs on the European Union further exacerbate uncertainty.
Compounding the situation, Trump has warned of “high levels” of sanctions and tariffs on Russian imports, adding to global supply chain concerns. These geopolitical risks are fueling fears of slower global economic growth and weaker energy demand, amplifying downward pressure on crude prices.
API report and supply dynamics
Adding to bearish sentiment, the American Petroleum Institute (API) reported a 1 million-barrel increase in U.S. crude oil inventories for the week ending January 16. This marks the first inventory build after five consecutive weeks of declines, signaling potentially weaker demand.
In Saudi Arabia, crude exports surged to an eight-month high of 6.2 million barrels per day (bpd) in November, though overall production saw a slight decline. This mixed supply data offers little relief for markets already rattled by Trump’s policy announcements.
Winter storm disruptions and recovery
WTI also faced additional supply disruptions earlier this week due to Winter Storm Enzo, which significantly affected shipping and energy operations in Texas. Several ports have since reopened, alleviating immediate logistical constraints, but the storm’s impact highlights ongoing vulnerabilities in supply chains.
Technical levels and outlook
From a technical perspective, WTI crude faces key support near $74.50, with a break below this level potentially opening the door for further losses toward $73.00. On the upside, resistance is observed near the $76.50-$77.00 range, which would need to be decisively breached for a potential recovery.
Conclusion
As the crude market remains under pressure, traders are closely monitoring developments in U.S. trade policies, inventory data, and broader geopolitical dynamics. With the potential for further volatility stemming from Trump’s tariff plans and global economic uncertainty, WTI crude prices may remain subdued in the near term, leaving market participants cautious about the direction of the next significant move.
West Texas Intermediate (WTI) crude oil prices extended their decline on Thursday, falling to $74.90 during early European trading. The uncertainty surrounding the potential economic impact of President Donald Trump’s proposed tariffs and energy policies has continued to weigh on market sentiment.
Trump’s tariff proposals fuel market volatility
The crude market is grappling with the implications of Trump’s proposed 10% tariff on imports from China, the largest global oil importer. While the proposed tariff is less severe than the previously threatened 60%, its announcement has added another layer of market anxiety. Trump’s additional threats of 25% tariffs on imports from Canada and Mexico and punitive tariffs on the European Union further exacerbate uncertainty.
Compounding the situation, Trump has warned of “high levels” of sanctions and tariffs on Russian imports, adding to global supply chain concerns. These geopolitical risks are fueling fears of slower global economic growth and weaker energy demand, amplifying downward pressure on crude prices.
API report and supply dynamics
Adding to bearish sentiment, the American Petroleum Institute (API) reported a 1 million-barrel increase in U.S. crude oil inventories for the week ending January 16. This marks the first inventory build after five consecutive weeks of declines, signaling potentially weaker demand.
In Saudi Arabia, crude exports surged to an eight-month high of 6.2 million barrels per day (bpd) in November, though overall production saw a slight decline. This mixed supply data offers little relief for markets already rattled by Trump’s policy announcements.
Winter storm disruptions and recovery
WTI also faced additional supply disruptions earlier this week due to Winter Storm Enzo, which significantly affected shipping and energy operations in Texas. Several ports have since reopened, alleviating immediate logistical constraints, but the storm’s impact highlights ongoing vulnerabilities in supply chains.
Technical levels and outlook
From a technical perspective, WTI crude faces key support near $74.50, with a break below this level potentially opening the door for further losses toward $73.00. On the upside, resistance is observed near the $76.50-$77.00 range, which would need to be decisively breached for a potential recovery.
Conclusion
As the crude market remains under pressure, traders are closely monitoring developments in U.S. trade policies, inventory data, and broader geopolitical dynamics. With the potential for further volatility stemming from Trump’s tariff plans and global economic uncertainty, WTI crude prices may remain subdued in the near term, leaving market participants cautious about the direction of the next significant move.