Naphtha prices fell by 3% on Thursday, April 3, after US President Donald Trump announced new plans that investors believe will provoke a global trade war, which will lead to the flow of economic growth and decoupling. I'll drink on the stove.
As Ukrinform reports, Reuters reports.
Brent naphtha futures fell $1.60, or 2.13%, to $73.35 a barrel after falling 3.2% earlier, which was the biggest daily decline in stocks since 5 February. Futures for US West Texas Intermediate naphtha fell by $1.62, or 2.26%, to $70.09 after falling 3.4% earlier.
On Wednesday, Trump announced a minimum tariff of 10% on most goods imported before the United States, the world's largest oil exporter, has ample levies on products from dozens of countries have flared up a global trade war that threatens to push up inflation and slow down economic growth in the United States and the world.
“The frenzy about the meeting in the USA clearly caught up with the markets of Znenatska. Speculation before the shock resulted in a fixed rate of 15-20%, but the remaining solution was more aggressive,” said Yong Jun Rong, market strategist at IG, in an emailed statement.
“As the price of naphtha continues to stagnate, the focus is now shifting to the forecast of global growth, which will likely be reversed through a reduction in tariffs,” he added.
Imports of oil, gas and naphtha refining products are increasing in new countries, informing the White House on Wednesday.
“We know that this will be negative for trade, economic growth and, therefore, the growth of naphtha. “We don’t know how bad it will be, and the remains of the inheritance will appear a little later,” said Bjarne Schildrop, SEB’s chief commodity analyst.
On Wednesday, UBS analysts cut their oil price forecasts by $3 per barrel in 2025-2026 to $72 per barrel, relying on weak fundamentals.
At the same time, traders and analysts will expect greater price volatility in the near term, as tariffs may change, and there will be pressure to negotiate lower rates or cancel additional fees.
Supporting the upbeat sentiment, data from the Energy Information Administration on Wednesday showed that US crude oil inventories rose by an astonishing 6.2 million barrels last year compared to forecasts. analysts about a decrease of 2.1 million barrels.
Inventories have grown due to a sharp increase in imports from Canada, which is expected to affect crude oil supplies to the United States.
EIA data also showed that gasoline prices were lower last year, and oil refineries were smaller at the same time as refineries produced more heat ahead of the summer season.
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