Oil prices continue to decline amid uncertainty over the impact of Trump’s proposed tariffs

Oil prices continued to fall in Asian trading on Thursday, amid rising uncertainty surrounding the potential effects of proposed tariffs and energy policies by U.S. President Donald Trump on global economic growth and energy demand.

Brent crude futures decreased by 26 cents, or 0.3%, to $78.74 a barrel at 0427 GMT, while U.S. West Texas Intermediate (WTI) crude slipped 23 cents, or 0.3%, to $75.21. Brent had previously closed at $79.00, marking its fifth consecutive day of declines, while WTI ended at $75.44, recording its fourth straight day of losses.

“Recent gains in oil markets have been reversed due to a mix of driving factors,” stated Priyanka Sachdeva, a senior market analyst at Phillip Nova. “These include anticipated increases in U.S. production as a result of Trump’s pro-drilling policies and a reduction in geopolitical tensions in Gaza, lessening fears of additional supply disruptions from major producing regions.”

Sachdeva also noted that the broader economic consequences of U.S. tariffs could further slow global oil demand growth.

Trump has threatened new tariffs against Russia if it does not negotiate an end to the conflict in Ukraine. He has also warned of additional tariffs targeting the European Union, Canada, and Mexico, along with a 10% punitive duty on China concerning alleged fentanyl shipments.

Earlier this week, Trump declared a national energy emergency, seeking to ease environmental restrictions on energy infrastructure and accelerate permits for new transmission and pipeline projects. However, some analysts remain doubtful about an immediate increase in oil production.

“Trump’s policies are adding volatility, and the market will be closely monitoring how sanctions, drilling expansions, and trade policies impact the global oil landscape,” Sachdeva added.

Regarding U.S. oil inventories, crude stocks increased by 958,000 barrels in the week ending January 17, according to sources citing American Petroleum Institute data. Gasoline inventories grew by 3.23 million barrels, while distillate stocks rose by 1.88 million barrels.