Oil Markets Skeptical As Trump Threatens Tariffs On Russian Oil

Oil markets have remained largely unfazed after U.S. President Donald Trump threatened to impose tariffs on buyers of Russian oil, as traders have grown accustomed to the White House’s frequent threats, Siyi Liu and Lewis Jackson reported for Reuters.

Oil prices dipped, with June Brent crude futures down 0.2% to $72.59 per barrel by 0028 GMT, while U.S. West Texas Intermediate (WTI) crude declined 0.3% to $69.18 per barrel.

Trump’s off-the-cuff proposal to levy tariffs of 25% to 50% on countries purchasing Russian oil could have significant market implications if it materializes. However, analysts and traders expressed skepticism about whether the president’s latest threat would translate into action.

"There’s an element of fatigue with the announcements from the U.S. administration on tariffs and sanctions," said Warren Patterson, head of commodities strategy at ING.

"So, I suspect that until we get something more concrete, the market is not going to overreact to this."

Oil prices dipped on Monday, with June Brent crude futures down 0.2% to $72.59 per barrel by 0028 GMT, while U.S. West Texas Intermediate (WTI) crude declined 0.3% to $69.18 per barrel.

China and India, two of the largest buyers of Russian crude, would play a crucial role in determining the impact of any secondary U.S. sanctions.

Recent American sanctions on Moscow have already led some Chinese state oil companies to reduce their purchases. Sinopec and Zhenhua Oil have halted Russian crude imports, while two other firms have scaled back volumes as they assess compliance risks.