By Milad Azar

Crude oil futures declined as market participants reacted to the announcement of broad U.S. import tariffs, raising concerns over global economic growth. President Trump’s decision to impose a minimum 10% tariff on imports, along with higher rates on select countries, has contributed to fears of weaker demand prospects.

While oil, gas, and refined products were exempt from the measures, the broader economic impact weighed on sentiment. If economic activity slows further, crude prices could remain under pressure as energy consumption declines, particularly in industrial and transportation sectors.

Adding to the bearish outlook, U.S. crude inventories surged by 6.2 million barrels, significantly exceeding expectations. Reduced refinery activity has further dampened near-term consumption expectations. Market attention is also on OPEC+ as excess supply remains a key downside risk.

Uncertainty surrounding trade relations and global demand continues to weigh on sentiment. If demand concerns persist, oil prices may continue to struggle to recover, but a resolution in trade disputes or stronger-than-expected economic growth could provide support.

Azar is Market Analyst at XTB MENA