Oil Prices Hold Steady Amid Fresh Set Of Trump Tariffs, Rise In US Gasoline Demand

Crude oil prices held ground early on Thursday as investors assessed the impact of fresh tariffs imposed by President Donald Trump, amid a rise in U.S. gasoline demand.

Uncertainties about global trade further heightened on Wednesday after Trump unveiled 50% tariffs on goods from Brazil, prompting threats of retaliation from Brazilian President Luiz Inacio Lula da Silva. The move came as a particular surprise, given that the U.S. posted a trade surplus with Brazil last year.

Benchmark Brent crude gained 0.1% at $70.27 per barrel, while the U.S. West Texas Intermediate crude advanced eight cents to $68.46 per barrel at 7.38 am GMT. Both benchmarks had risen in the earlier session on hopes of stronger demand in the U.S.

A decline in the U.S. dollar also aided in the gains of oil on Thursday, Reuters reported, citing OANDA senior analyst Kelvin Wong. The U.S. Dollar Index was down 0.2% at the time of writing, which benefited holders of other currencies by allowing them to buy dollar-priced future contracts.

According to U.S. Energy Information Administration data released on Wednesday, gasoline demand rose 6% to 9.2 million barrels per day last week, while gasoline and diesel inventories declined. However, U.S. crude inventories unexpectedly rose by 7.1 million barrels, the EIA data showed.

Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the ‘extremely bearish’ territory.

So far this week, Trump has sent letters to several countries, including key allies South Korea and Japan, revealing a fresh set of reciprocal tariffs. The U.S. President has set a deadline of Aug. 1 before the tariffs come into effect. Trump has also announced 50% tariffs on copper, a key metal used across a wide range of industries.

Separately, minutes of the Federal Reserve’s meeting from June said only a handful of officials were keen on interest rate cuts.

The United States Oil Fund has gained marginally this year, compared with 5.9% gains in the SPDR S&P 500 ETF (SPY).

Also See: Brazil Stocks, Currency Reel As Trump Escalates Trade Pressure With Highest Tariff Yet Over Bolsonaro Trial

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