Oil prices turn negative as Trump announces new tariffs.
Oil prices fell into negative territory after briefly rising by a dollar in post-settlement trade on Wednesday, following U.S. President Donald Trump’s announcement of new reciprocal tariffs on key trading partners. The move raised concerns over a potential global trade war, which could weaken demand for crude.
Brent crude futures settled 46 cents higher at $74.95 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 51 cents to $71.71 per barrel. However, prices reversed course after Trump’s press conference, where he announced tariffs on the European Union, China, and South Korea.
For weeks, Trump had touted 2nd of April as “Liberation Day,” signaling the start of new tariffs that could disrupt global trade. However, his tariff chart did not mention Canada and Mexico, despite Canada exporting 4 million barrels per day to the U.S.
Market analysts warned that Trump’s tariff policies could fuel inflation, slow economic growth, and escalate trade tensions, limiting oil price gains. “Crude prices have paused last month’s rally, with Brent facing resistance above $75,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Meanwhile, Mexico eased concerns of a trade war after President Claudia Sheinbaum stated that the country would not impose retaliatory tariffs on the U.S.
Adding to the uncertainty in global oil markets, Trump also threatened secondary sanctions on Russian oil and tightened measures against Iran in an effort to curb its exports. Meanwhile, Russia, the world’s second-largest oil exporter, imposed restrictions on major oil routes, suspending a mooring at its Black Sea port of Novorossiisk and limiting loadings from a key Caspian pipeline.
Despite these developments, investors shrugged off bearish U.S. crude inventory data, which showed an unexpected 6.2 million barrel build last week, according to the Energy Information Administration (EIA).
