Crude oil futures flat despite Trump tariff concerns
Crude oil futures traded flat on Thursday morning, despite markets fears that recent trade tariff announcements by US President Donald Trump could impact the global economy.
At 9.56 am on Thursday, September Brent oil futures were at $70.23, up by 0.06 per cent, and August crude oil futures on WTI (West Texas Intermediate) were at $68.37, down by 0.01 per cent. July crude oil futures were trading at ₹5,859 on Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹5879, down by 0.34 per cent, and August futures were trading at ₹5762 against the previous close of ₹5782, down by 0.35 per cent.
Trump has sent tariff letters to some of the key trading partners of the US such as South Korea, Japan and Brazil. On Wednesday, Trump announced a 50 per cent reciprocal tariff on Brazil. The Brazilian President Luiz Inacio Lula da Silva warned that Trump’s new tariffs would be met with retaliatory actions. Lula had called Trump an ‘unwanted emperor’ during the recently concluded BRICS summit.
Markets fear that Trump’s move to impose tariffs on imports from different countries could lead to demand destruction thus impacting the global economy. Crude oil is one of the major commodities traded in the world market.
Meanwhile, the weekly petroleum status report released by the US EIA (Energy Information Administration) showed an increase in crude oil inventories in the US for the week ending July 4.
According to the US EIA, commercial crude oil inventories in the increased by 7.1 million barrels for the week ending July 4. At 426 million barrels, US crude oil inventories were about 8 per cent below the five-year average for this time of year.
Total motor gasoline inventories decreased by 2.7 million barrels from last week and were about 1 per cent below the five-year average for this time of year. Both finished gasoline inventories and blending components inventories decreased last week.
Distillate fuel inventories decreased by 0.8 million barrels last week and were about 23 per cent below the five-year average for this time of year.
Total products supplied in the US over the last four-week period averaged 20.6 million barrels a day, down by 1.6 per cent from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.2 million barrels a day, down by 1 per cent from the same period last year. Distillate fuel product supplied averaged 3.8 million barrels a day over the past four weeks, up by 3.8 per cent from the same period last year. Jet fuel product supplied was up 1.7 per cent compared with the same four-week period last year.
July natural gas futures were trading at ₹274.10 on MCX during the initial hour of trading on Thursday against the previous close of ₹273.10, up by 0.37 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August turmeric (farmer polished) contracts were trading at ₹13,420 in the initial hour of trading on Thursday against the previous close of ₹13,000, up by 0.90 per cent.
July guarseed futures were trading at ₹5,211 on NCDEX in the initial hour of trading on Thursday against the previous close of ₹5,240, down by 0.55 per cent.
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Published on July 10, 2025