Oil prices steady as market considers latest US tariff news

Oil prices were little changed on Tuesday as investors digested the latest headlines on U.S. President Donald Trump's on-again, off-again tariffs and tried to figure how much the U.S.-China trade war could reduce global economic growth and oil demand.

Brent crude futures fell 11 cents, or 0.2%, to $64.77 per barrel at 10:34 a.m. EDT (1434 GMT), while U.S. West Texas Intermediate (WTI) crude fell 12 cents, or 0.2%, to $61.41.

Vacillating U.S. trade policies have created uncertainty for global oil markets and prompted the Organization of the Petroleum Exporting Countries to lower its demand outlook on Monday.

The International Energy Agency followed on Tuesday with its projection that global oil demand in 2025 will grow at its slowest rate for five years due again to worries about economic growth from Trump’s trade tariffs.

That trade tariff uncertainty has caused several banks, including UBS, BNP Paribas and HSBC, to cut their crude price forecasts for this year and next.

"Should the trade war further escalate, our downside risk scenario case — i.e., a deeper U.S. recession and a hard landing in China — could see Brent trading at $40-60/bbl over the coming months," said UBS analyst Giovanni Staunovo.