- The Oil price falls back from $70.00 as fresh Trump’s tariff threats have raised concerns over China’s economic growth.
- Trump announced additional 10% tariffs on China for pouring fentanyl into the US economy.
- Investors await US Trump’s meet with Ukrainian Zelenskyy on minerals deal.
West Texas Intermediate (WTI), futures on NYMEX, falls back to near $69.20 in European trading hours on Friday. The Oil price rebounded to near $70.00 on Thursday after recovering from a fresh two-month low around $68.30, which it posted on Wednesday.
The Oil price faces sharp selling pressure as fresh tariff threats from United States (US) President Donald Trump have escalated global growth concerns. On Thursday, Trump communicated in his tweet on Truth.Social that he is poised to impose additional 10% tariffs on China. Trump clarified that drugs pouring into the US economy through the borders of Canada and Mexico are majorly in the form of fentanyl, which is made in and supplied by China.
The imposition of additional import duties on China by the US is expected to make Chinese products less competitive in the global market. Such a scenario indicates a weak Oil demand outlook, given that China is the largest importer of Oil in the world.
President Donald Trump has also confirmed that Canada and Mexico will face 25% tariffs on March 4.
Meanwhile, growing optimism over peace in the war between Russia and Ukraine has already kept the Oil price on the back foot. Investors await Donald Trump’s meeting with Ukrainian leader Volodymyr Zelenskyy over the minerals deal on Friday. They are also expected to discuss terms for peace in Ukraine. Positive developments over peace between Russia and Ukraine would be an unfavorable scenario for the Oil price, assuming that the Eurozone and the US will revoke sanctions on Russia, which will result in an increase in seaborne oil flows into the global market.
