Oil retreated after US President Donald Trump ratcheted up his trade war with sweeping tariffs on major trading partners, including China and the European Union, raising concerns about declining crude demand.
West Texas Intermediate futures dropped to $71.37 a barrel at 4:36 p.m. New York time in late trading, down 0.5% from their settlement price. Global benchmark Brent slipped to $74.38. Trump said the US will impose a 34% tariff on US imports from China and 20% on imports from the European Union.
“As the numbers come in and reality sets in, we continue to fade,” said Jon Byrne, an analyst at Strategas Securities.
The US relies on crude from Canada and Mexico for refiners in the Midwest and the Gulf Coast. America also relies on fuel shipments from Europe to meet demand in the populous East Coast region, where there are few refineries remaining.
Gold extended gains after the tariff announcement.
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