Oil Prices Steady Amid Trump Tariff Threats: What Investors Need to Know for Market Stability and Business Planning
Oil prices remained largely unchanged on Thursday as investors assessed the risks to supply stemming from US President Donald Trump’s accelerated efforts to end the war in Ukraine through the imposition of additional tariffs. A surprising increase in US crude stockpiles also exerted downward pressure on prices.
Brent crude futures for September, which expire on Thursday, inched up by 4 cents, or 0.05%, to $73.28 per barrel as of 0812 GMT. Similarly, US West Texas Intermediate (WTI) crude for September rose by 4 cents, or 0.06%, to $70.04 per barrel. Both benchmarks had gained 1% on Wednesday.
Harry Tchiliguirian of Onyx Capital Group noted the market’s cautious stance, stating, “We’re awaiting clearer details on the nature of new tariffs or the enforcement of sanctions on Russia.” He added that Trump’s history of frequently altering policies shortly after announcing them has made traders hesitant to fully factor these measures into prices.
Trump announced plans to impose 100% secondary tariffs on Russian trading partners if there is no progress toward ending the Ukraine conflict within 10 to 12 days, advancing an earlier 50-day deadline. Additionally, the US has warned China—the largest purchaser of Russian oil—that it could face steep tariffs should it continue its imports from Russia.
On Wednesday, the US Treasury unveiled new sanctions targeting more than 115 Iran-linked individuals, entities, and vessels, intensifying the administration’s “maximum pressure” campaign following its bombing of Iranian nuclear sites in June.
In US crude oil markets, inventories unexpectedly rose by 7.7 million barrels to 426.7 million barrels for the week ending July 25, driven primarily by reduced exports, according to data from the Energy Information Administration (EIA). Analysts had forecasted a decline of 1.3 million barrels.
Conversely, gasoline stocks dropped by 2.7 million barrels to 228.4 million barrels, significantly surpassing the anticipated draw of 600,000 barrels.
Toshitaka Tazawa, an analyst at Fujitomi Securities, commented, “The US inventory report showed a surprise build in crude inventories but a much larger-than-expected gasoline draw, reflecting robust demand during the driving season, which resulted in a balanced impact on the oil market.”
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The current volatility in oil prices, driven by geopolitical tensions and shifting US sanctions, signals heightened risk for Oman’s oil-dependent economy but also underscores opportunities for diversification in energy and trade sectors. Smart investors and entrepreneurs should monitor policy shifts closely and consider hedging strategies or exploring non-oil sectors to mitigate exposure to sudden supply disruptions and market fluctuations.
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