Oil hit a new yearly low as Trump’s conflicting trade statements fueled market uncertainty. WTI fell below $69 a barrel amid volatile trading. Fears of trade wars are clouding economic and energy demand outlooks for the US and China.
US diesel futures also dropped 1.9% as inventories surged.Trump’s shifting tariff plans are hurting consumer and business confidence, weakening demand, according to SEB’s Bjarne Schieldrop.
Uncertainty grew as Trump gave conflicting statements on tariffs for Canada, Mexico, and the EU. Oil prices also fell on expectations of increased supply, with potential Russia-Ukraine peace talks and Iraq resuming Kurdish oil exports.
Trade and supply concerns outweighed bullish factors, including Trump’s plan to revoke Venezuela’s oil concessions granted by the Biden administration, new sanctions on Iranian exports, and expectations that OPEC+ will delay its output increase.
