Oil prices saw further declines in early trading on Thursday, extending the losses from the previous session, as uncertainty over U.S. President Donald Trump’s proposed tariffs raised concerns about global economic growth and energy demand.
Brent crude futures dropped by 23 cents, or 0.3%, to $78.79 per barrel at 0135 GMT, while U.S. West Texas Intermediate (WTI) crude slipped 18 cents, or 0.2%, to $75.26.
In the previous session, Brent settled at $79.00, marking its fifth consecutive day of losses. WTI futures finished at $75.44, continuing a downward trend for the fourth day in a row.
Trump’s remarks on tariffs have added to market uncertainty. He recently threatened to impose additional tariffs on Russia if the country fails to reach an agreement to end the ongoing war in Ukraine. Trump also mentioned that other nations involved in the conflict could face similar sanctions. Furthermore, the president has vowed to levy tariffs on the European Union, Canada, and Mexico, and his administration is reportedly considering a 10% punitive tariff on China due to the fentanyl issue.
In terms of supply, a Reuters poll estimated that U.S. crude oil stockpiles had likely decreased by 1.6 million barrels during the week ending January 17. Gasoline inventories, on the other hand, were expected to have risen by 2.3 million barrels, while distillate stocks were predicted to increase by 300,000 barrels.
The data, compiled ahead of reports from the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA), was delayed by a day due to the Martin Luther King Jr. Day holiday on Monday. The EIA’s report is expected to be released at 12:00 p.m. ET (1700 GMT) on Thursday.
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