

Oil: Tariffs weigh on oil – ING

Oil prices are under pressure this morning, following other risk assets lower, after the Trump administration unveiled a base tariff of 10% on all imports from all trading partners. WTI was down more than 3% at one stage in the early morning session and trading below US$70/bbl, ING's FX analyst Chris Turner notes. Scale of some of Trump’s tariffs to raise global demand concerns "President Trump’s latest levies will come into effect on 5 April. An additional tariff will be implemented on some trading partners, effective 9 April. For example, the reciprocal tariff on China is 34%, while the EU faces 20%. Meanwhile, Canada and Mexico are exempt from these latest tariffs. Oil and natural gas also appear to be exempt. The scale of some of Trump’s tariffs will raise global demand concerns. There’s also increased uncertainty, with markets waiting to see how trading partners retaliate." "Away from tariffs, OPEC+ is holding a call today to discuss the need for members to stick to production targets. OPEC+ is set to bring an additional 138k b/d of supply back to the market this month, part of plans to start gradually unwinding 2.2m b/d of supply cuts. We may also get clarity on whether the group will continue to unwind supply cuts next month. Yet even as OPEC+ brings supply back to the market, some members need to make compensation cuts for previous overproduction. This should more than offset the planned supply increases." "The Energy Information Administration’s (EIA) weekly inventory report was fairly bearish, with US crude oil inventories increasing by 6.17m barrels over the last week. Cushing crude oil inventories increased by 2.37m barrels. The large build was driven by a 728k b/d week-on-week drop in crude exports. Crude oil imports increased by 271k b/d WoW. Furthermore, refinery utilisation fell by 1pp to 86%. For refined products, gasoline stocks fell by 1.55m barrels, while distillate stocks increased by 264k barrels."

Learn more

Publication date:

2025-04-03 10:48:38 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.