Oil prices steadied as investors weighed the potential impact of U.S. President Donald Trump’s recent move to introduce reciprocal tariffs on the nation’s trading partners. Brent crude hovered near $75 per barrel after a slight dip on Thursday, while West Texas Intermediate (WTI) remained above $71 per barrel.
Trump signed an order proposing new tariffs on a country-by-country basis, a process expected to take weeks or even months to fully implement. The announcement raised concerns about escalating trade tensions and their potential effects on global markets.
As tariffs on crude imports from Canada and Mexico are set to take effect next month, alongside a levy on steel, the U.S. oil industry remains optimistic that it can secure exemptions from the administration, according to the American Petroleum Institute.
Despite the uncertainty surrounding trade, oil prices are poised to post a modest weekly gain, marking the first such increase since mid-January. This is largely attributed to tightening U.S. sanctions on Russian crude flows. However, the recent agreement between President Trump and Russian President Vladimir Putin to begin talks on ending the ongoing conflict in Ukraine has sparked speculation that supply risks may ease.
In addition to the geopolitical developments, the International Energy Agency (IEA) lowered its global oil surplus forecast, largely due to tighter sanctions on Russia and Iran, as well as stronger demand growth projections from Asia. The IEA’s revised outlook, detailed in its monthly report released Thursday, reflects a tightening global oil market.
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