TOKYO: Oil prices dropped on Thursday as the latest tariff announcements by U.S. President Donald Trump were perceived by market participants to threaten global economic growth and demand for the resource.
Brent crude futures were down 22 cents, or 0.31%, at $69.97 a barrel by 0052 GMT. U.S. West Texas Intermediate crude lost 27 cents, or 0.39%, to $68.11 a barrel.
On Wednesday, Trump threatened Brazil, Latin America’s largest economy, with a punitive 50% tariff on exports to the U.S., after a public spat with his Brazilian counterpart Luiz Inacio Lula da Silva.
Earlier, Trump announced plans about tariffs on copper, semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and others, adding to over a dozen of letters issued earlier in the week including for powerhouse U.S. suppliers South Korea and Japan.
As policymakers remain worried about the inflationary pressures from Trump’s tariffs, only “a couple” of officials at the Federal Reserve’s June 17-18 meeting said they felt interest rates could be reduced as soon as this month, the minutes released on Wednesday showed.
Higher interest rates make borrowings more expensive and reduce demand for oil.
