Crude oil futures traded lower on Friday morning as the US administration is getting ready to impose tariffs on Mexico, Canada, and China with effect from March 4.
At 9.56 am on Friday, May Brent oil futures were at $73.19, down by 0.52 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $69.95, down by 0.57 per cent.
Trump’s post on social media platform Truth Social said drugs are still pouring into the US from Mexico and Canada at very high and unacceptable levels. “A large percentage of these drugs, much of them in the form of Fentanyl, are made in, and supplied by, China. More than 100,000 people died last year due to the distribution of these dangerous and highly addictive POISONS. Millions of people have died over the last two decades. The families of the victims are devastated and, in many instances, virtually destroyed,” he said.
Stating that the US cannot allow this scourge to continue to harm it, he said the proposed tariffs scheduled to go into effect on March 4, will, indeed, go into effect, as scheduled. China will likewise be charged an additional 10 per cent tariff on that date. He said the April 2 reciprocal tariff date will remain in full force and effect.
China is one of the major consumers of crude oil in the global market. Market players believe that tariff restrictions like the one announced by the US would impact the demand for commodities such as crude oil in the global market.
Meanwhile, a Reuters report said that OPEC+ is debating whether to raise oil output in April as planned or freeze it as its members struggle to read the global supply picture because of fresh US sanctions on Venezuela, Iran and Russia.
Quoting sources, the report said that the UAE, which is keen to make use of its rising output capacity, would like to proceed with the increase, as would Russia. Other members, including Saudi Arabia, favour a delay, it said.
Trump’s recent efforts to reach a peace deal between Russia and Ukraine have raised hopes of increased crude oil supply to the market. Market players feel that a peace deal, if achieved, would help relax sanctions on Russia. This, in turn, would help improve oil supply to the global market.
On the National Commodities and Derivatives Exchange (NCDEX), April jeera contracts were trading at ₹20875 in the initial hour of trading on Friday against the previous close of ₹20800, up by 0.36 per cent.
April dhaniya futures were trading at ₹8100 on NCDEX in the initial hour of trading on Friday against the previous close of ₹8146, down by 0.56 per cent.