Oil market steady as Trump readies new tariff strategy
Oil prices on the New York fuel exchange are not changing significantly despite a large increase in stockpiles of this raw material. Investors are awaiting President Donald Trump's announcement regarding tariff plans, brokers report.
Oil prices stabilised on Wednesday at a low level after a decline in the previous session due to concerns that new U.S. tariffs, expected to be announced today by Donald Trump, could deepen the global trade war, thereby limiting demand for crude oil, writes Reuters.
Brent futures rose by 1 cent to $74.50 (£57.71) per barrel, after a 0.4% decrease on Tuesday. U.S. West Texas Intermediate crude futures rose by 3 cents to $71.23 (£55.17) after a 0.4% drop. On Monday, prices had reached their highest level in five weeks, Reuters notes.
The market waits in anticipation
A barrel of West Texas Intermediate oil on Wednesday morning for May deliveries costs $71.23 (£55.17) on NYMEX in New York, up by 0.04%. Brent on ICE for June is priced at $74.48 (£57.70) per barrel, after a decrease of 0.01%.
Investors are awaiting the tariffs announcement while also analysing 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, according to API calculations.
Gasoline stocks are down by 1.6 million barrels, and distillate fuels by 11,000 barrels, reported API.
Meanwhile, U.S. President Donald Trump will 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 unveiled this week, will affect all countries with which the U.S. maintains trade relations.
The American leader announced that a comprehensive plan regarding tariff policy, which he termed "Liberation Day," would be presented on Wednesday.
So far, the U.S. administration has imposed tariffs on aluminium, 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, stated 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 details regarding the scale and scope of the tariffs but indicated that Donald Trump would be open to listening to foreign governments and business leaders who request reduced tariffs.
The White House Press Secretary added that many countries have already contacted the American administration concerning 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.
