Oil prices fell amid Trump's escalation of the trade war with China
Kyiv • UNN
Oil prices fell after Trump escalated the trade war with China, despite announcing a 90-day pause in tariffs. China has already imposed tariffs on 84% of goods from the US.
Oil prices retreated on Thursday as US President Donald Trump stepped up his trade war with China, despite announcing a 90-day pause in tariffs targeting other countries, UNN reports, citing Reuters.
Details
Brent crude futures fell 39 cents, or 0.6%, to $65.09 a barrel by 09:30 Kyiv time, while US West Texas Intermediate crude futures fell 29 cents, or 0.5%, to $62.0.
After suspending tariffs for most countries, benchmark crude contracts settled 4% higher in price on Wednesday after falling 7% during the session.
However, Trump raised the tariff rate for China to 125%, effective immediately, from a previously announced tariff of 104%, which took effect earlier on Wednesday.
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Higher US tariffs for China leave a lot of uncertainty in the markets, ING commodity strategists said in a note on Thursday.
"This uncertainty is likely to continue to curb global growth, which is undoubtedly a concern for oil demand," they said.
"The ICE Brent forward curve signals a better supply of oil to the market," the strategists said, with ICE Brent moving into contango from the January 2026 contract.
China also announced an additional import duty on US goods, imposing tariffs of 84% from Thursday.
"We can expect oil prices to resume their broader downward trend once the optimism surrounding the recent tariff deferral fades," said Yeap Jun Rong, market strategist at online trading platform IG.
"There are persistent headwinds from the demand side, and China's growth prospects are under threat due to the ongoing tit-for-tat policy," Yap said.
Investors were also watching mixed supply factors.
"Prices also found some support after the Keystone pipeline declared force majeure on planned oil supplies," ANZ Research analysts said on Thursday, noting that there are downside risks due to signs of increased supply from OPEC member countries.
The Keystone pipeline from Canada to the US remained closed on Wednesday after an oil spill near Fort Ransom in North Dakota, while plans for its return to operation were being assessed, its operator South Bow said.
At the same time, the Caspian Pipeline Consortium (CPC) resumed loading oil at one of the two previously closed berths in the Black Sea, it said on Wednesday, after a court lifted restrictions imposed on the Western-backed group's facility by a Russian regulator.
In the United States, crude oil inventories rose by 2.6 million barrels in the week to April 4, the Energy Information Administration said, nearly double expectations in a Reuters poll that forecast an increase of 1.4 million barrels.
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