Crude oil futures traded lower on Friday morning as the market assessed the impact of US tariffs set to come into effect from April 2.
At 9.55 am on Friday, June Brent oil futures were at $73.27, down by 0.10 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $69.86, down by 0.09 per cent. April crude oil futures were trading at ₹5989 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹5995, down by 0.10 per cent, and May futures were trading at ₹5971 against the previous close of ₹5982, down by 0.18 per cent.
On Wednesday, US President Donald Trump announced the plans to impose 25 per cent tariff on imported automobiles and parts that will come into effect from April 2. This has created apprehensions in the market over the global demand for commodities such as crude oil. Automobile sector is one of the major consumers of this commodity.
Replying to the proposed tariff on imported automobiles and parts, Canadian Prime Minister Mark Carney said the longstanding trade relationship with the US is over. He urged the need for a comprehensive renegotiation of trade agreements between Canada and US.
Trump administration’s plan to impose worldwide reciprocal tariffs from April 2 is also set to impact the trade relations between US and various other countries.
Escalation of trade tensions due to US tariffs has made traders in the oil market cautious. They feel that tariff-related uncertainties could impact the demand for commodities such as crude oil.
Meanwhile, recent data showed a decline in crude oil inventories in the US for the week ending March 21, indicating the demand for the commodity in that market.
Data compiled by the US Energy Information Administration showed that commercial crude oil inventories in the US decreased by 3.3 million barrels last week. This was much below the market expectation.
April natural gas futures were trading at ₹334.50 on MCX during the initial hour of trading on Friday against the previous close of ₹337.90, down by 1.01 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April turmeric (farmer polished) contracts were trading at ₹13380 in the initial hour of trading on Friday against the previous close of ₹13280, up by 0.75 per cent.
April cottonseed oilcake futures were trading at ₹2795 on NCDEX in the initial hour of trading on Friday against the previous close of ₹2787, up by 0.29 per cent.
