Oil Prices Dip Amid Trade Uncertainty
Oil prices fell in early trading on Thursday, extending losses as concerns mount over the potential impact of proposed U.S. tariffs on global economic growth and energy demand.
* Brent crude futures declined by 0.3%, or 23 cents, to $78.79 per barrel.
* U.S. West Texas Intermediate (WTI) crude futures dropped by 0.2%, or 18 cents, to $75.26 per barrel.
The decline continues a series of losses, with Brent futures settling at $79.00 on Wednesday and WTI futures closing at $75.44.
The uncertainty stems from President Donald Trump's threat to impose additional tariffs on Russia, the European Union, Canada, Mexico, and China. These tariffs could potentially disrupt global trade, impacting economic growth and reducing demand for energy.
Meanwhile, an extended Reuters poll estimates that U.S. crude oil stockpiles fell by 1.6 million barrels in the week ended January 17. Gasoline stockpiles are projected to have increased by 2.3 million barrels, while distillate inventories likely gained 300,000 barrels.
The U.S. Energy Information Administration and the American Petroleum Institute are expected to release updated inventory data later on Thursday, providing further insights into supply and demand dynamics.