Crude oil prices dropped on Thursday as traders reacted to new U.S. tariff announcements. Brent crude futures were down by 22 cents, or 0.31%, to US$69.97 a barrel. U.S. West Texas Intermediate (WTI) crude fell 27 cents, or 0.39%, to US$68.11 a barrel.
On Wednesday, U.S. President Donald Trump threatened Brazil with a 50% tariff on exports to the U.S. after a public disagreement with Brazilian President Luiz Inacio Lula da Silva. This move followed earlier plans to impose tariffs on copper, semiconductors, and pharmaceuticals. The U.S. also sent tariff notices to countries like the Philippines, Iraq, South Korea, and Japan.
The Federal Reserve shared its meeting minutes, which showed that only a few officials supported cutting interest rates soon. Higher interest rates can reduce borrowing and slow economic activity, potentially lowering demand for crude oil.
While crude stock levels in the U.S. rose last week, gasoline and distillate supplies fell, according to the Energy Information Administration (EIA). Gasoline demand rose by 6% to 9.2 million barrels per day. This provided slight support to crude oil prices.
In July, global flights averaged 107,600 per day in early July, the highest ever. Flights in China reached a five-month high, and port and shipping activity showed strong signs of trade growth. Oil demand growth this year has averaged 0.97 million barrels per day, close to the forecast of 1 million.
India’s Sensex fell 176 points to close at 83,536.08, while Nifty 50 dropped 46 points to 25,476.10, ending a three-day winning streak. Asian markets showed mixed performance. Japan’s Nikkei fell 0.45%, but South Korea’s Kospi rose 0.24%, and Australia’s S&P/ASX 200 gained 0.51%.
Global oil prices fell as markets worried about the impact of U.S. tariffs on global trade and growth. However, rising fuel demand and trade activity continue to support prices to some extent. Investors are now watching interest rate decisions and global trade developments closely.
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Published on: Jul 10, 2025, 9:52 AM IST
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