SINGAPORE: A lower dollar and indications of robust US petrol demand supported oil prices on Thursday, which remained stable as investors considered the possible effects of US President Donald Trump’s tariffs on global economic development. By 8:00 a.m. Saudi time, Brent oil futures were up 4 cents at $70.23 per barrel. At $68.37 per barrel, US West Texas Intermediate crude dropped 1 cent.
According to a report from analytics firm Kpler, demand-side macroeconomic uncertainty has led to a more cautious buying environment, particularly in Asia. It also stated that geopolitical risk premiums have decreased as a result of the Israel-Iran truce holding.
Following a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva, Trump vowed to impose a punitive 50 percent duty on exports to the United States on Wednesday, threatening to impose the largest economy in Latin America.
Additionally, he has announced plans to impose tariffs on copper, semiconductors, and pharmaceuticals. His administration has already sent tariff letters to the Philippines, Iraq, and other countries earlier this week, in addition to more than a dozen letters delivered earlier this week for major US suppliers including Japan and South Korea.
Only “a couple” of members at the Federal Reserve’s June 17–18 meeting stated they believed interest rates may be lowered as soon as this month, according to minutes released on Wednesday, indicating that policymakers are still concerned about the inflationary pressures brought on by Trump’s tariffs.
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