Oil Closes Flat in Volatile Session Amid Tariff Uncertainty
Oil prices recovered and stabilized slightly after the U.S. announced an exemption for automakers from the newly imposed 25% tariffs.
On Thursday, oil remained steady in a highly volatile market, with Brent crude still trading below $70 per barrel. Prices were weighed down by ongoing tariff pressures between the U.S., Canada, and China, as well as OPEC+ plans to increase production.
Brent crude futures rose $0.16 (0.23%) to $69.46 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $0.05 (0.08%) to $66.36 per barrel.
Brent had hit a low of $68.33 on Wednesday, its weakest level since December 2021. This drop followed a larger-than-expected increase in U.S. crude inventories, adding downward pressure alongside bearish news of OPEC+ increasing production quotas for the first time since 2022 and new U.S. tariffs imposed on Tuesday.
Market Outlook and Tariffs Impact
Market volatility persists as traders digest OPEC’s announcement of additional crude supply next month, signs of a potential peace deal between Russia and Ukraine, and shifting U.S. tariff policies.
Russia has stated it is seeking a peace agreement in Ukraine that ensures its long-term security while maintaining the territorial gains made during the conflict.
Meanwhile, Mexican goods covered under the North American trade pact will be exempt from the 25% tariffs for one month, U.S. President Joe Biden announced on Thursday. However, no similar postponement for Canada was mentioned.
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