Oil Prices Steady Amid Tariffs and Economic Concerns

Oil prices remained stable on Tuesday as traders assessed the impact of new U.S. trade tariffs. Brent crude futures edged up 11 cents (0.14%) to $75.98 per barrel, while U.S. West Texas Intermediate (WTI) crude rose 5 cents (0.07%) to $72.37.

President Donald Trump imposed a 25% tariff on all steel and aluminum imports without exemptions, targeting shipments from Canada, Brazil, Mexico, South Korea, and others. The move, aimed at supporting U.S. industries, raises concerns about a potential multi-front trade war that could slow global economic growth and weaken energy demand.

Last week, Trump delayed 25% tariffs on Mexican and Canadian imports and 10% duties on Canadian crude oil until March 1, pending negotiations. Meanwhile, China retaliated against U.S. tariffs with a 10% levy on American crude imports, set to take effect Monday. Trade talks between the two nations show no signs of progress, adding further uncertainty to global markets.

Additionally, the U.S. Federal Reserve is expected to hold interest rates steady until next quarter. A delay in rate cuts could curb economic growth and, in turn, limit oil demand. Economists had previously predicted a rate reduction in March, but inflation concerns may keep rates elevated.

On the supply side, U.S. crude and gasoline stockpiles likely increased last week, while distillate inventories may have declined, according to a preliminary Reuters poll. Official data from the American Petroleum Institute is due Tuesday, followed by an Energy Information Administration report on Wednesday.

Market sentiment remains cautious as investors weigh trade tensions, economic risks, and energy demand forecasts.