Crude oil futures continued to decline due to ongoing uncertainty surrounding U.S. President Donald Trump’s proposed tariff policies.
These concerns are focused on the potential impact of such policies on global economic growth and energy demand, contributing to sustained losses for both Brent and WTI crude.
Trump’s tariff proposals, including measures targeting Russia, the European Union, Canada, Mexico, and China, could fuel market volatility. In this regard, market participants could closely monitor developments around these policies and their impact. With consecutive days of declines recorded, the market’s sentiment remains bearish.
Additionally, expectations of increased US oil production, driven by Trump’s pro-drilling stance, have added downward pressure on prices. Meanwhile, easing geopolitical tensions in the Middle East reduced concerns about supply disruptions and could weigh on the market. Traders could also look to Eastern Europe for new geopolitical developments.
At the same time, the API’s US oil inventories figures rose by 1 million barrels in the week ended January 17 after five weeks of declines. The increase is also adding to the uncertainty about demand levels. Traders could also react to the EIA’s data on crude inventories later today where an increase could pull the market further down.
