Crude Oil Market Falls on US Tariff Delays

Brent crude futures traded at $75.02 per barrel after shedding 16 cents or 0.21 per cent and the US West Texas Intermediate (WTI) closed at $71.29 a barrel after it lost 8 cents or 0.11 per cent.

The US President, Mr Donald Trump, ordered commerce and economics officials to study reciprocal tariffs against countries that place tariffs on US goods.

According to Reuters, these recommendations are not due until April 1, and will allow more time for negotiations with trading partners.

Also, potential peace deal between Russia and Ukraine after three years could boost global energy supplies.

The delay to retaliatory sanctions followed Mr Trump announcing a 25 per cent tariffs on all steel and aluminium imports into the US recently following tariffs on Canada, Mexico and China announced but later suspended.

China’s retaliatory tariffs on some US exports also took effect as there was no sign yet of progress in talks between the two economic powerhouses.

There are expectations that there could be an increase in Russian energy exports and by extension, increased supply this year.

For instance, the International Energy Agency (IEA) said in its latest oil market report that Russian oil exports could be sustained if workarounds to the latest US sanctions package are found.

This came as Russian crude production rose slightly last month.

Russia is the world’s third-largest oil producer and sanctions imposed on its crude exports after its invasion of Ukraine nearly three years ago have supported higher prices.

The IEA reviewed up its 2025 global oil demand forecast by 50,000 barrels per day to 1.1 million barrels per day, but noted that supply is still expected to outpace demand, due to a surge in production from countries like the US, Canada, and Brazil.

Even if the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) keeps its production cuts in place, global supply is set to rise by 1.6 million barrels per day this year.