Crude oil futures held steady on Wednesday after US President Donald Trump hinted at imposing a 10 percent tariff on China, stirring market uncertainty.
At 9:58 AM, March Brent oil futures stood at $79.36, a modest increase of 0.09 percent, while West Texas Intermediate (WTI) crude for March traded at $75.84, up by 0.01 percent. Meanwhile, February crude oil futures on the Multi Commodity Exchange (MCX) were priced at ₹6577, rising by 0.20 percent from the previous close of ₹6564, and March futures saw an increase of 0.41 percent, trading at ₹6540 from ₹6513.
On Tuesday, President Trump revealed that his administration was considering a 10 percent tariff on Chinese imports, effective February 1. He cited the export of fentanyl from China to Mexico and Canada as the primary reason behind the move.
In response, Chinese Vice Premier Ding Xuexiang, speaking at the World Economic Forum, emphasized the damaging effects of trade wars and stressed the importance of international economic cooperation.
As one of the world’s largest consumers of crude oil, China’s market is closely tied to global oil demand, and experts worry that escalating trade tensions could reduce oil consumption in the country.
Trump had previously announced plans to impose a 25 percent tariff on imports from Canada and Mexico, also set to begin on February 1. Analysts suggest that trade policies and tariff risks could further weigh on oil prices, especially after the Brent crude benchmark dropped below $80 per barrel on Tuesday.
In their Wednesday commodities report, Warren Patterson and Ewa Manthey, analysts at ING Think, noted that the oil market is increasingly focused on potential US trade policies, particularly Trump’s tariff threats. They warned that escalating trade risks and retaliatory measures could continue to pressure oil prices.
Additionally, US crude oil production was affected by a winter storm along the Gulf Coast on Tuesday, with reports indicating that oil output in North Dakota fell by 130,000 to 160,000 barrels per day.
In other commodity markets, January menthaoil futures on MCX dropped 0.60 percent to ₹918.50, while February castorseed contracts on the NCDEX saw a slight increase of 0.19 percent, trading at ₹6479. February cottonseed oilcake futures also rose by 0.22 percent to ₹2770.
As global trade tensions persist and weather disruptions continue to affect supply chains, oil and commodity markets remain volatile.
