SINGAPORE: Oil prices dipped in Asian trade on Thursday, extending losses amid uncertainty over how US President Donald Trump’s proposed tariffs and energy policies would impact global economic growth and energy demand.
Brent crude futures fell 26 cents, or 0.3%, to $78.74 a barrel at 0427 GMT, while US West Texas Intermediate crude (WTI) eased 23 cents, or 0.3%, to $75.21.
In the prior session, Brent futures settled at $79.00 in a fifth straight day of losses and WTI futures settled at $75.44 in a fourth consecutive day of declines.
“Oil markets have given back some recent gains due to mixed drivers,” said senior market analyst Priyanka Sachdeva at Phillip Nova.
“Key factors include expectations of increased US production under President Trump’s pro-drilling policies and easing geopolitical stress in Gaza, lifting fears of further escalation in supply disruption from key producing regions.”
The broader economic implications of US tariffs could further dampen global oil demand growth, she added.
Trump has said he would add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war in Ukraine.
He added these could be applied to “other participating countries” as well.
He also vowed to hit the European Union with tariffs, impose 25% tariffs against Canada and Mexico, and said his administration was discussing a 10% punitive duty on China because fentanyl is being sent to the US from there.
On Monday, he also declared a national energy emergency.
That is intended to provide him with the authority to reduce environmental restrictions on energy infrastructure and projects and ease permitting for new transmission and pipeline infrastructure, though some analysts remain sceptical on the pace of oil production uptick in the near-term.
“Overall, Trump’s policies are introducing volatility, and the market will closely watch how sanctions, drilling expansions, and trade policies evolve in shaping the global oil landscape,” Phillip Nova’s Sachdeva said.
Meanwhile, on the US oil inventory front, crude stocks rose by 958,000 barrels in the week ended Jan. 17, according to sources citing American Petroleum Institute figures on Wednesday.
Gasoline inventories rose by 3.23 million barrels, and distillate stocks climbed by 1.88 million barrels, they said.
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