Oil prices continued to fall on Thursday, July 10, following U.S. President Donald Trump’s recent statements on potential new tariffs, which market participants interpreted as a threat to global economic growth, reports Baltimore Chronicle with reference to Reuters.
Brent crude futures dropped by $0.03 to $70.16 per barrel. U.S. West Texas Intermediate crude fell by $0.06, trading at $68.32 per barrel.
According to analysts at Kpler, macroeconomic uncertainty has created a more cautious environment for buyers, especially in Asia.
On Wednesday, Donald Trump threatened Brazil — the largest economy in Latin America — with a 50% tariff on exports to the United States, following a public dispute with Brazilian President Luiz Inácio Lula da Silva.
Earlier, Trump announced plans to impose tariffs on copper, semiconductors, and pharmaceutical products. His administration also sent tariff-related notices to the Philippines, Iraq, and other nations, including key U.S. allies South Korea and Japan.
Amid growing concerns among policymakers about inflationary pressure triggered by tariffs, only a few members of the Federal Reserve System during the June 17–18 meeting expressed the view that an interest rate cut could be possible as early as this month.
Higher interest rates increase borrowing costs, which can negatively affect oil demand.
According to a report from the U.S. Energy Information Administration (EIA) released on Wednesday, crude oil inventories rose last week, while gasoline and distillate stocks declined, partly supporting prices. EIA data shows that gasoline demand rose by 6%, reaching 9.2 million barrels per day.
During the first eight days of July, the average number of global daily flights reached 107,600 — an all-time high. In China, flight numbers hit a five-month peak, while port and freight activity indicated continued expansion in trade compared to the same period last year. These insights were shared in a client note by JP Morgan.
The note also stated that global oil demand has been rising at an average rate of 0.97 million barrels per day since the beginning of the year, closely aligning with the forecasted growth of 1 million bpd.
In addition, there is skepticism that the recent production quota increase announced by OPEC+ will result in actual production growth.
The cartel is planning another large-scale output increase in September, which would complete both the rollback of voluntary cuts by eight member countries and the transition of the United Arab Emirates to a new quota.
Earlier we wrote that Iran ramps up oil exports after Israeli strikes.
