Impact of US Tariffs on Global Oil Demand

Oil prices experienced a significant drop, falling by more than 1% this Wednesday. The decline is attributed to growing concerns over the United States' decision to impose tariffs on a wide range of imports, including a 25% tariff on all imported steel and aluminum set to take effect on March 12. This move has sparked fears of retaliation from major trade partners such as the European Union and Canada, potentially leading to a decrease in global demand for oil.

Market Reactions and Future Outlook

At 5:50 am ET, West Texas Intermediate (WTI) for March settlements decreased by 1.24%, trading at $72.38 per barrel. Similarly, Brent for April deliveries saw a 1.04% loss, selling for $76.16 per barrel at 5:51 am ET. Economists and industry leaders have voiced concerns that these tariffs could have a detrimental impact on the economy, particularly affecting energy demand and the auto industry.