Oil Prices Steady Amid Tariff Concerns and Weaker Dollar
Investors weigh impact of tariffs on global growth while strong US gasoline demand supports prices.
Oil prices remained steady on Thursday as investors assessed the potential consequences of U.S. President Donald Trump's tariffs on global economic growth, coupled with a weaker dollar that provided support to prices.
Brent crude futures rose by 4 cents to $70.23 per barrel, while U.S. West Texas Intermediate crude fell by 1 cent to $68.37 per barrel.The demand for oil has been cautious due to macroeconomic uncertainty, particularly in Asia, according to analytics firm Kpler.
However, geopolitical risk premiums have receded as the Israel-Iran ceasefire remains in place.On Wednesday, Trump threatened Brazil with a 50% tariff on exports to the U.S., following a dispute with Brazilian President Luiz Inacio Lula da Silva.
Additionally, tariffs were proposed for copper, semiconductors, and pharmaceuticals, further adding to concerns about inflationary pressures.Only a couple of Federal Reserve officials at the June meeting suggested that interest rates could be reduced as early as this month, according to minutes released on Wednesday.
Higher interest rates make borrowing more expensive, which can reduce demand for oil.Despite these uncertainties, a weaker U.S. dollar in Asia trading session contributed positively to oil prices by making it cheaper for holders of other currencies.
Additionally, U.S. crude stocks rose while gasoline and distillate inventories fell last week, with gasoline demand increasing by 6% to 9.2 million barrels per day.Global daily flights averaged an all-time high of 107,600 in the first eight days of July, with China reaching a five-month peak in flights.
Trade activities also showed signs of expansion, as evidenced by port and freight operations.
Furthermore, OPEC+ is set to approve another significant output boost for September, which could potentially result in increased production despite some members already exceeding their quotas.
Brent crude futures rose by 4 cents to $70.23 per barrel, while U.S. West Texas Intermediate crude fell by 1 cent to $68.37 per barrel.The demand for oil has been cautious due to macroeconomic uncertainty, particularly in Asia, according to analytics firm Kpler.
However, geopolitical risk premiums have receded as the Israel-Iran ceasefire remains in place.On Wednesday, Trump threatened Brazil with a 50% tariff on exports to the U.S., following a dispute with Brazilian President Luiz Inacio Lula da Silva.
Additionally, tariffs were proposed for copper, semiconductors, and pharmaceuticals, further adding to concerns about inflationary pressures.Only a couple of Federal Reserve officials at the June meeting suggested that interest rates could be reduced as early as this month, according to minutes released on Wednesday.
Higher interest rates make borrowing more expensive, which can reduce demand for oil.Despite these uncertainties, a weaker U.S. dollar in Asia trading session contributed positively to oil prices by making it cheaper for holders of other currencies.
Additionally, U.S. crude stocks rose while gasoline and distillate inventories fell last week, with gasoline demand increasing by 6% to 9.2 million barrels per day.Global daily flights averaged an all-time high of 107,600 in the first eight days of July, with China reaching a five-month peak in flights.
Trade activities also showed signs of expansion, as evidenced by port and freight operations.
Furthermore, OPEC+ is set to approve another significant output boost for September, which could potentially result in increased production despite some members already exceeding their quotas.
