Oil slides more than 4% as investors weigh Trump’s tariff U-turn
Higher tariffs against China are likely to prompt lower US crude imports by Beijing
10 April 2025 - 07:52
UPDATED 10 April 2025 - 20:48
byArathy Somasekhar and Jeslyn Lerh
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New York — Oil prices fell by nearly $3 per barrel on Thursday, wiping out the prior session’s rally, as investors reassessed the details of a planned pause in sweeping US tariffs and focus shifted to a deepening trade war between Washington and Beijing.
US West Texas Intermediate crude futures fell $2.91, or 4.7%, to $59.44 per barrel by 1.30pm EDT (7.30pm). Brent crude futures fell $2.77, or 4.2%, to $62.71 a barrel.
Both contracts had gained more than $2 a barrel on Wednesday after US President Donald Trump paused the heavy tariffs he had announced against dozens of US trading partners a week ago, marking an abrupt U-turn less than 24 hours after the levies took effect.
Trump also raised tariffs against China. US tariffs on Chinese imports now total 145%, the White House told media on Thursday.
China also announced an additional import levy on US goods, imposing an 84% tariff last Thursday.
Higher tariffs against China are likely to prompt lower US crude imports by Beijing, backing up supply and raising US storage levels, trading advisory firm Ritterbusch and Associates told clients on Thursday.
US crude oil exports to China fell to 112,000 barrels-per-day (bpd) in March, nearly half of last year’s 190,000 bpd, data from vessel tracker Kpler shows.
Meanwhile, US crude stockpiles rose by 2.6-million barrels last week, government data showed on Wednesday, almost double the 1.4-million-barrel increase analysts projected in a Reuters poll.
Macquarie analysts on Thursday said they expected another build this week.
The US is also moving ahead with a 10% levy on all its imports.
The US Energy Information Administration on Thursday lowered its global economic growth forecasts and warned tariffs could weigh heavily on oil prices, as it slashed its US and global oil demand forecasts for this year and next.
“The tariff-driven expectation of reduced demand amid the continued possibility of a US recession will remain front and centre of trader concerns in likely keeping a lid on near term price gains,” Ritterbusch and Associates said.
Update: April 10 2025 This story has been updated with the latest oil prices.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil slides more than 4% as investors weigh Trump’s tariff U-turn
Higher tariffs against China are likely to prompt lower US crude imports by Beijing
New York — Oil prices fell by nearly $3 per barrel on Thursday, wiping out the prior session’s rally, as investors reassessed the details of a planned pause in sweeping US tariffs and focus shifted to a deepening trade war between Washington and Beijing.
US West Texas Intermediate crude futures fell $2.91, or 4.7%, to $59.44 per barrel by 1.30pm EDT (7.30pm). Brent crude futures fell $2.77, or 4.2%, to $62.71 a barrel.
Both contracts had gained more than $2 a barrel on Wednesday after US President Donald Trump paused the heavy tariffs he had announced against dozens of US trading partners a week ago, marking an abrupt U-turn less than 24 hours after the levies took effect.
Trump also raised tariffs against China. US tariffs on Chinese imports now total 145%, the White House told media on Thursday.
China also announced an additional import levy on US goods, imposing an 84% tariff last Thursday.
Higher tariffs against China are likely to prompt lower US crude imports by Beijing, backing up supply and raising US storage levels, trading advisory firm Ritterbusch and Associates told clients on Thursday.
US crude oil exports to China fell to 112,000 barrels-per-day (bpd) in March, nearly half of last year’s 190,000 bpd, data from vessel tracker Kpler shows.
Meanwhile, US crude stockpiles rose by 2.6-million barrels last week, government data showed on Wednesday, almost double the 1.4-million-barrel increase analysts projected in a Reuters poll.
Macquarie analysts on Thursday said they expected another build this week.
The US is also moving ahead with a 10% levy on all its imports.
The US Energy Information Administration on Thursday lowered its global economic growth forecasts and warned tariffs could weigh heavily on oil prices, as it slashed its US and global oil demand forecasts for this year and next.
“The tariff-driven expectation of reduced demand amid the continued possibility of a US recession will remain front and centre of trader concerns in likely keeping a lid on near term price gains,” Ritterbusch and Associates said.
Update: April 10 2025
This story has been updated with the latest oil prices.
Reuters
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