Crude Oil Prices Flat Amid Tariff Concerns Caused by President Donald Trump

On Aug 1, 2025, crude oil prices remained largely flat during Asian trading as market sentiment was dampened by U.S. President Donald Trump's newly announced tariffs targeting several key trading partners. The move intensified concerns over a potential slowdown in global oil demand.

Despite the cautious tone, crude prices were still on track to end the week higher, supported by escalating geopolitical risks. In particular, threats of more aggressive U.S. sanctions on Russian oil provided upward momentum earlier in the week.

By 21:27 ET (01:27 GMT), Brent crude futures for October delivery were steady at $71.71 per barrel, while West Texas Intermediate (WTI) crude slipped slightly to $69.25.

Weekly Rally Fueled by Supply Risk

Both Brent and WTI futures had posted gains of between 4.8% and 6% for the week, largely driven by expectations of tighter global oil supplies. The upward push came as Washington floated the possibility of significantly increasing sanctions on Russian oil, including tariffs of up to 100% on major importers like China and India. Additionally, India was hit with a separate 25% tariff due to its close ties with Moscow.

If China and India curtail purchases of Russian crude, global supply dynamics could shift dramatically, given the two nations are among the largest oil consumers globally. This prospect sparked a sharp rally in oil prices earlier in the week, although that momentum appeared to fade by Thursday.

Tariff Uncertainty, China Slowdown Weigh on Market

Investor sentiment turned more cautious after Trump formally signed an order on Thursday outlining new tariffs, ranging from 10% to 50%, against a broad set of U.S. trading partners. While agreements were reached with allies such as the UK, Japan, and South Korea, the administration moved ahead with steep tariffs on others—including a 35% duty on Canadian goods.

Also Read: Gift Nifty in Red; Sensex and Nifty 50 Likely to Open Lower on August 1

The tariff plan, set to take effect in seven days, raised fears of widespread economic disruptions that could weaken global energy demand.

Adding to the pressure, the U.S. dollar strengthened considerably this week after the Federal Reserve held interest rates steady and indicated it was in no rush to initiate cuts. A stronger dollar typically weighs on commodity prices by making them more expensive for non-dollar holders.

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