Onome Amuge
Oil prices continued their decline in Asian trading on Thursday, adding to previous losses as market participants struggled to gauge the potential impact of President Donald Trump’s proposed tariffs and energy policies on global economic growth and energy demand.
Brent crude futures, the global benchmark for oil prices, continued their downward trajectory, declining by 38 cents, or 0.5 percent, to settle at $78.62 a barrel, marking their sixth consecutive day of losses.
West Texas Intermediate (WTI) crude futures, followed suit, as it slipped 39 cents or 0.5 percent to settle at $75.05 a barrel, declining for the fifth consecutive day.
Priyanka Sachdeva, senior market analyst at Phillip Nova, observed that oil markets have given back some recent gains due to mixed drivers.
Sachdeva cited key factors including expectations of increased U.S. production under President Trump’s pro-drilling policies and easing geopolitical stress in Gaza, lifting fears of further escalation in supply disruption from key producing regions.
She added that the broader economic implications of U.S. tariffs could further dampen global oil demand growth.
President Donald Trump’s recent remarks hint at a potential escalation of tensions with both Russia and the European Union, as he threatens to impose new tariffs on Russia if it does not reach a peace agreement to end its invasion of Ukraine.
Furthermore, Trump has proposed some measures against other nations, including a 25 percent tariff against Canada and Mexico, as well as a possible 10 percent tariff against China due to its alleged involvement in the trafficking of fentanyl into the U.S.
