Slight Increase in Oil Prices Amid Concerns Over US Tariffs Ramifications
Oil prices witnessed a slight increase during today's trading session, Thursday, July 10, amid market anticipation of the recent US decisions regarding imposing new tariffs, which could impact global demand levels.
In a new trade escalation, US President Donald Trump threatened on Wednesday to impose a 50% tariff on exports from Brazil _the largest economy in Latin America_ to the United States, following a public dispute with Brazilian President Luiz Inacio Lula da Silva.
Trump also announced new tariffs on copper imports, in addition to his administration sending customs warnings to both the Philippines and Iraq, adding to a series of similar measures targeting other countries, including major trading partners South Korea and Japan.
On the other hand, these actions have raised concerns about exacerbating inflationary pressures, especially after the minutes of the recent Federal Reserve meeting _published on Wednesday_ revealed policy makers' diverging views on the possibility of interest rate cuts during the current July.
The minutes stated that "only a few policymakers at the bank said in the meeting held on June 17 and 18 that they believe in the possibility of an interest rate cut this month". It is worth noting that an increase in interest rates usually raises borrowing costs and weakens demand for oil.
In a related context, prices received partial support from the US Energy Information Administration data, which indicated on Wednesday an increase in crude oil inventories in the United States, while gasoline and distillate inventories decreased last week. Gasoline demand also rose by 6% to reach 9.2 million barrels per day.
At the end of the trading day, Brent crude futures recorded a slight increase of 0.1% to settle at $70.28 per barrel, while US crude futures rose by less than 0.1%, registering $68.42 per barrel.
