Global oil prices drop for fifth day amid fears of Trump’s tariff impact

SINGAPORE: Oil prices dipped in early trade on Thursday, extending losses amid uncertainty over how proposed tariffs by US President Donald Trump on several countries would impact global economic growth and energy demand.

Brent crude futures fell 23 cents, or 0.3 per cent, to $78.79 a barrel at 0135 GMT, while US West Texas Intermediate crude (WTI) eased 18 cents, or 0.2 per cent, to $75.26.

In its previous session, Brent futures settled at $79.00 in a fifth straight day of losses. WTI futures settled at $75.44 in a fourth consecutive day of declines.

Trump has said he would add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war in Ukraine. He added these could be applied to “other participating countries” as well.

He also vowed to hit the European Union with tariffs, impose 25 per cent tariffs against Canada and Mexico, and said his administration was discussing a 10 per cent punitive duty on China because fentanyl is being sent to the US from there.

Meanwhile, estimates from an extended Reuters poll showed that on average US crude oil stockpiles were expected to have fallen by 1.6 million barrels in the week to Jan. 17.

Gasoline stockpiles were estimated to have risen by 2.3 million barrels last week, and distillate inventories were likely to have gained 300,000 barrels.

The poll was conducted ahead of the American Petroleum Institute industry group’s report and another from the Energy Information Administration at 12:00 p.m. ET (1700 GMT) on Thursday.

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