Oil approaches one-month highs as investors assess supply, trade war risks

Oil prices were near steady on Thursday as traders assessed tighter crude supplies along with new U.S. tariffs and their expected effect on the world's economy.

Brent crude futures dropped 11 cents to $73.68 a barrel by 12:53 p.m. EDT (1653 GMT). U.S. West Texas Intermediate crude futures fell 3 cents to $69.62.

On Wednesday, oil prices rose about 1% to their highest since February.

Market participants were weighing escalating trade war risks. U.S. President Donald Trump unveiled his plan on Wednesday to implement 25% tariffs on imported cars and light trucks effective next week, while those on auto parts begin on May 3.

"The biggest headwind for oil right now are the concerns about tariffs, and tariffs might slow demand," said Phil Flynn, senior analyst with Price Futures Group.

Trump on Tuesday imposed new 25% tariffs on potential buyers of Venezuelan crude.

India's Reliance Industries  operator of the world's biggest refining complex, will halt Venezuelan oil imports following the tariff announcement, sources said on Wednesday.