Oil Prices Decline as U.S Effects Global Reciprocal Tariffs
Crude oil prices declined further in the global commodity market following reciprocal tariffs announcements by US President Donald Trump on April 2. The international benchmark, Brent crude, decreased by around 2% trading at $72.17 per barrel, down from $73.64 at the previous session’s close.
The US benchmark, West Texas Intermediate (WTI) fell by about 2.1%, settling at $69.01 per barrel, compared to its prior session close of $70.48. On Wednesday, President Trump signed an executive order imposing reciprocal tariffs on nations worldwide, fulfilling a long-standing pledge.
The move has weighed on markets for months. A baseline tariff of 10% will be applied to all countries except Canada and Mexico, with steeper rates targeting what Trump has labelled the ‘worst’ trade offenders.
US Treasury Secretary Scott Bessent cautioned nations against retaliating, warning that any countermeasures could lead to even higher US tariff rates. Meanwhile, European Commission President Ursula von der Leyen called Trump’s tariff policy a ‘major blow’ to the global economy, warning it will ‘massively suffer.’
Experts anticipate retaliatory measures from affected nations, fueling market concerns that an escalating trade war could dampen economic growth, weaken oil demand, and exert further downward pressure on prices.
US commercial crude oil inventories increased by 1.4% during the week ending March 28, according to data released by the Energy Information Administration (EIA) late Wednesday.
Inventories rose by approximately 6.2 million barrels to 439.8 million barrels, contrary to market expectations of a 6.37 million-barrel increase. Strategic petroleum reserves, which are excluded from commercial crude stocks, increased by 300,000 barrels to 396.4 million barrels, the data showed.
Over the same period, gasoline inventories decreased by around 1.6 million barrels to 237.6 million barrels. EIA data showed that US crude oil production increased by 6,000 barrels per day (bpd) to about 13.58 million bpd during the week ending March 21.
US crude oil imports rose by 271,000 bpd to approximately 6.4 million bpd, while exports fell by 728,000 bpd to around 3.8 million bpd over the same period.
In the Short-Term Energy Outlook (STEO) released on March 11, the EIA predicted that crude oil output in the country would reach an average of 13.61 million bpd in 2025. #Oil Prices Decline as U.S Effects Global Reciprocal Tariffs Yield Slides on Post Auction Demand for Nigerian Treasury Bills
