Oil holds near six-month low as tariffs dent demand outlook

Oil held near the lowest level in six months as President Donald Trump’s sweeping tariffs opened up trade wars on multiple fronts, raising concerns about the outlook for energy demand.West Texas Intermediate traded near $66 a barrel after losing more than 5% over the past four sessions. Brent closed below $70 on Wednesday. Trump is delaying some levies on automakers and considering exemptions for certain agriculture products, but still moving forward with reciprocal tariffs on April 2.

Oil has tumbled by almost a fifth since mid-January as Trump’s trade policies rattle global markets, with Canada and China responding with their own measures on US products. OPEC+ has also signaled plans to start reviving idled production in April, adding to the bearish headwinds.

US Gulf Coast refineries are placing fewer orders for crude from Mexico, which is planning to announce its response to Trump’s tariffs on Sunday. The Canadian province of Alberta will work on building pipelines to the coast to increase oil shipments to Asia and Europe, according to its premier.Some market watchers are starting to rethink their price forecasts. Morgan Stanley trimmed its Brent estimates through the rest of the year, and expects the benchmark to trade in the $60s during the second half.

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