Oil up on tighter supply risks; views mixed on Trump's auto tariff impact

Oil up on tighter supply risks; views mixed on Trump's auto tariff impact

Oil prices nudged higher on Thursday on concerns about tighter global supply after the U.S. tariff threat on Venezuelan oil buyers, while market players also grappled with the impact of Donald Trump's latest announcement on auto-sector tariffs.

Brent crude futures were up 14 cents, or 0.2%, at $73.93 a barrel. U.S. West Texas Intermediate crude futures also rose 14 cents, or 0.2%, to $69.79 a barrel at 0049 GMT.

On Wednesday, oil prices rose by around 1% on government data showing U.S. crude oil and fuel inventories fell last week, and on the U.S. threat of tariffs on nations buying Venezuelan crude.

Traders and investors were still assessing the impact on oil demand from U.S. President Trump's latest announcement of a 25% tariff on imported cars and light trucks from next week. The view was that it could drive auto prices up, potentially impacting demand for oil, but also slow down the switch to greener cars.

"The news around Trump's tariffs on autos may actually turn out to be a net positive for crude oil because the rise in new car prices from tariffs will mean it slows down the switch to newer, more fuel-efficient models," said Tony Sycamore, a market analyst at IG.

U.S. oil and gas activity increased slightly in the first quarter, but energy executives were pessimistic about the sector's outlook, a Dallas Fed survey showed, as separate Trump tariffs on steel and aluminium could drive up costs for drilling and pipeline construction.