Benchmark crude oil prices fell by over 5% after United States President Donald Trump announced sweeping new tariffs.
Investors are worried that the tariffs will cause a global trade war that will limit economic growth and cut fuel demand. Nigeria’s crude oil grades were also affected. Based on findings, Nigeria’s crude grade, Bonny Light, fell by 2.84% to $78.62. Brass River fell 1.77% while Qua Iboe fell 1.76%.
Brent Crude fell to $70.76 while West Texas Intermediate Crude fell by 4.24% to $67.47 on Thursday.
United States President Donald Trump on Wednesday unveiled a 10% minimum tariff on most goods imported to the United States.
Traders and analysts are expecting more price volatility in the short term.
They believe that the tariffs may change as countries try to negotiate lower rates or impose retaliatory measures.
Trump imposed a 14% tariff on Nigeria’s exports to the US.
“Trump is even fighting America’s neighbours, Canada and Mexico, and their traditional European allies, so imposing 14% tariffs on Nigeria shouldn’t come as a surprise.
“The good side of Trump policy is compelling countries to be less dependent on the US and find alternatives, said Shehu Sani, a former Nigerian Senator. Nigeria already imposed a 27% tariff rate on all American goods.
