Oil remains close to its one-month peak as investors evaluate the chances of a fresh trade war

Concerns over global supply maintained oil prices close to one-month highs on Thursday, while markets evaluated fresh U.S. tariffs.

By 1158 GMT, Brent crude futures dropped 14 cents, or 0.2%, to $73.65 a barrel. At $69.54, U.S. West Texas Intermediate crude futures fell 11 cents, or 0.2%.

Oil prices increased by almost 1% on Wednesday, reaching their highest level since February.

According to Tamas Varga, an analyst at PVM, oil ignored Wednesday’s declining stock markets and strengthened as a result of U.S. tariffs against Venezuela and a drop in U.S. crude and fuel stockpiles.

On Tuesday, U.S. President Donald Trump levied fresh 25% tariffs on prospective purchasers of Venezuelan oil.

According to sources on Wednesday, Reliance Industries (RELI.NS), the operator of the largest refining complex in the world, will stop importing Venezuelan oil as a result of the tariff decision.

“The oil market is somewhat waiting to see what the Trump administration would do next. Tariffs pose threats to economic growth, but other Trump administration actions may also force oil barrels off the market, according to Giovanni Staunovo, an analyst at UBS.

Additionally, traders were evaluating how Trump’s recent declaration of a tariff on imported vehicles and light trucks starting next week would affect the demand for oil.

“The news around Trump’s tariffs on autos may actually turn out to be a net positive for crude oil because the rise in new car prices from tariffs will mean it slows down the switch to newer, more fuel-efficient models,” said Tony Sycamore, an IG market analyst.

As demand is impacted by uncertainty around U.S. policy and the possibility of tariff conflicts, Asian bank DBS does not anticipate prices to return to the higher levels observed in early 2025, according to Suvro Sarkar, team lead for the bank’s energy division.