FX.co ★ Brent Eases as Traders Weigh US Auto Tariff Impact

Brent crude oil futures edged closer to $73 per barrel on Thursday, retracing some of the gains observed in the previous session. The market responded to traders assessing the potential ramifications of US auto tariffs on the oil industry. Elevated vehicle prices could potentially dampen crude demand and slow progress toward a shift to cleaner energy sources. Despite this, oil prices found some support due to heightened supply risks posed by US sanctions and tariffs affecting major producers such as Iran and Venezuela. Notably, India's Reliance Industries, owner of the world's largest refining complex, intends to cease imports of Venezuelan oil in response to the US's warning of a 25% tariff on purchasers of its crude. Furthermore, indications of strong demand were observed as government data revealed a significant reduction in US crude stockpiles, which decreased by 3.34 million barrels last week—the most substantial decline since December. Gasoline inventories saw a reduction as well.