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

WTI crude oil futures edged lower to approximately $69 per barrel on Thursday, partially retracting gains from the preceding session. This adjustment arises as market participants assess how potential US auto tariffs could influence oil dynamics. The expected increase in vehicle prices may dampen crude demand and hinder progress towards cleaner energy adoption. Nonetheless, the oil market remains bolstered by heightened supply risks originating from pivotal producers like Iran and Venezuela due to US-imposed sanctions and tariffs. Notably, India's Reliance Industries, which operates the world's largest refining complex, plans to cease importing oil from Venezuela in response to the US's proposed 25% tariff on purchasers of Venezuelan crude. Furthermore, indicators of robust demand have surfaced, evidenced by recent government data revealing a significant reduction in US crude inventories by 3.34 million barrels last week—the most substantial decline since December—accompanied by a drop in gasoline stockpiles.