HOUSTON- Oil prices were steady on Tuesday as traders digested another round of trade tariffs, this time a 25 percent levy on all US imports of steel and aluminum, which could weigh on global economic and energy demand in the world’s biggest oil consumer.
Brent crude futures were up 11 cents, or 0.14 percent, at $75.98 a barrel, while US West Texas Intermediate crude rose 5 cents or 0.07 percent to $72.37.
President Donald Trump substantially raised tariffs on steel and aluminum imports to the US on Tuesday to a flat 25 percent “without exceptions or exemptions” to aid the struggling industries that could increase the risk of a multi-front trade war.
The tariff rate will hit millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries.
Tariffs could dampen global economic growth and energy demand, weakening oil prices.
Trump last week postponed 25 percent duties on imports from Mexico and Canada, and 10 percent on Canadian crude oil to March 1, pending negotiations with those two nations.
The president also introduced 10 percent additional tariffs on China, for which Beijing retaliated with its own levies on some US imports, including a 10 percent duty on crude.
Those retaliatory tariffs on some US exports were due to take effect on Monday, with no sign yet of progress in talks between Beijing and Washington.
Also weighing on crude demand, the US Federal Reserve will wait until next quarter before cutting rates again, according to a majority of economists in a Reuters poll who previously expected a March cut.
The Fed faces the threat of rising inflation. Keeping rates at a higher level could limit economic growth, which would impact oil demand growth.
US crude oil and gasoline stockpiles were expected to have risen last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Monday.
