Crude oil futures remained stable on Wednesday following indications from US President Donald Trump about a possible 10 per cent tariff on China.
As of 9.58 am on Wednesday, March Brent oil futures were at $79.36, an increase of 0.09 per cent, while March crude oil futures on WTI stood at $75.84, a marginal improvement of 0.01 per cent.
Multi Commodity Exchange (MCX) reported February crude oil futures trading at ₹6577, up by 0.20 per cent from the previous close, and March futures trading at ₹6540, showing a rise of 0.41 per cent.
Trump’s recent remarks about imposing a 10 per cent tariff on China starting February 1, citing the export of fentanyl to Mexico and Canada as a reason, has stirred concerns in the market. In contrast, Chinese Vice Premier Ding Xuexiang emphasized the importance of international economic cooperation, stating that there are no winners in a trade war.
The US President has also threatened to impose a 25 per cent tariff on imports from Canada and Mexico from February 1. This has fueled uncertainty in the oil market, with Brent crude settling below $80 a barrel on Tuesday.
Market analysts from ING Think highlighted the potential impact of Trump’s trade policies on oil prices. Additionally, the winter storm affecting the US Gulf Coast has had a noticeable impact on US crude oil production, with reports of significant declines in output from North Dakota.
In the commodities market, January mentha oil futures on MCX were trading lower at ₹918.50, while NCDEX reported positive trading for February castor seed contracts and cottonseed oilcake futures.
Overall, trade and tariff concerns continue to influence market dynamics, prompting investors to closely monitor developments in global trade policies.
