Oil market braces for impact as Trump readies tariff plan
Oil prices on the New York fuel exchange are not changing much despite a large increase in the stockpiles of this raw material. Investors are waiting for the announcement of President Donald Trump's tariff plans, brokers report.
Oil prices stabilized on Wednesday at a low level after falling in the previous session due to concerns that new U.S. tariffs, expected to be announced today by Donald Trump, will deepen the global trade war, potentially limiting demand for crude oil, according to Reuters.
Brent futures rose by 1 cent to $74.50 per barrel after a 0.4% decrease on Tuesday. U.S. West Texas Intermediate crude futures rose by 3 cents to $71.23 after a 0.4% drop. On Monday, prices reached their highest level in five weeks, notes Reuters.
The market waits in anticipation
A barrel of West Texas Intermediate oil, for May deliveries, costs $71.23 on NYMEX in New York, which is an increase of 0.04%. Brent on ICE for June is priced at $74.48 per barrel, following a 0.01% decrease.
Investors are waiting for the announcement of tariffs while currently analyzing the latest industry report from the American Petroleum Institute (API) on oil and product stocks in the United States.
The American Petroleum Institute reported in its weekly update that U.S. oil inventories increased by 6 million barrels.
In the Cushing hub, according to API calculations, oil inventories rose by 2.2 million barrels last week.
However, gasoline and distillate stocks have decreased, per API calculations.
Gasoline is down by 1.6 million barrels, and distillate fuels by 11,000 barrels, reported API.
Meanwhile, U.S. President Donald Trump is set to announce his plan to impose reciprocal tariffs on the United States' trade partners.
Reciprocal tariffs
Donald Trump announced on Sunday that the reciprocal tariffs, set to be announced this week, will cover all countries with which the U.S. maintains trade relations.
The American leader announced the presentation of a comprehensive plan regarding tariff policy, which he called "Liberation Day," on Wednesday.
So far, the U.S. administration has imposed tariffs on aluminum, steel, and cars, and has also increased tariffs on all goods imported from China.
The tariffs that Donald Trump will announce on Wednesday will take effect immediately, announced White House Press Secretary Karoline Leavitt.
"My understanding is that the tariff announcement will come tomorrow. They will be effective immediately," Leavitt told reporters on Tuesday.
Leavitt provided few hints about the size and scope of the tariffs but indicated that Donald Trump would be open to listening to foreign governments and corporate leaders who request lower tariffs.
The White House Press Secretary added that many countries have already contacted the American administration about President Donald Trump's tariff plans.
"I don’t want to get ahead of the President. This is obviously a very big day. He is with his trade and tariff team right now, perfecting it to make sure this is a perfect deal for the American people and the American worker, and you will all find out in about 24 hours from now," Leavitt said.
