TOKYO/SINGAPORE- Oil prices were little changed on Tuesday as markets weighed the impact of newly announced US tariffs on countries that buy Venezuelan oil and the uncertain outlook for global demand.
Brent crude futures were up 1 cent at $73.01 a barrel. US West Texas Intermediate crude dipped 1 cent to $69.10.
Both benchmarks gained more than 1 percent on Monday after US President Donald Trump announced a 25 percent tariff on countries importing oil and gas from Venezuela. Oil is Venezuela’s main export and China, which is already the subject of US tariffs, is its largest buyer.
“Investors fear Trump’s various tariffs could slow the economy and curb oil demand, but the prospect of tighter US sanctions on Venezuelan and Iranian oil constraining supply, along with his swift policy shifts, make it difficult to take large positions,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.
“We expect WTI to stay around $70 for the rest of the year, with potential seasonal gains as the US and other countries enter the driving season,” he added.
Last week, the US issued new sanctions intended to hit Iranian oil exports.
However, crude eased back from its session highs after the Trump administration also on Monday extended a deadline to May 27 for US producer Chevron to wind down operations in Venezuela.
