Oil prices under pressure after US tariff announcement - Commerzbank

Oil prices came under significant pressure following US President Trump's tariff announcements, Commerzbank's commodity analyst Carsten Fritsch notes.

Oil prices fall towards $65 per barrel

"Brent fell by more than 6% and dropped below the $70 per barrel mark. The surprising production increase by OPEC+ also contributed to the price slide. Shortly before the announcement of far-reaching tariffs on Wednesday evening, Brent was still trading at $75. There are concerns that the tariffs will lead to a further weakening of oil demand, especially as China is particularly hard hit by the reciprocal tariffs."

"If the other countries respond to the US tariffs with counter-tariffs, this could set off a spiral of tariffs that would put even more pressure on demand. As energy imports are exempt from tariffs, US refineries are not required to pay tariffs when importing crude oil from Canada and Mexico."

"Demand for Canadian oil could nevertheless fall in the short term, as US refineries have apparently brought forward purchases in anticipation of tariffs. In the last reporting week, US crude oil imports from Canada rose by 11% to their highest level since the beginning of January, according to data from the US Energy Information Administration."