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Oil prices remain unchanged as investors assess the impact of Trump tariffs

The oil prices were barely affected on Tuesday, as investors considered the impact of U.S. Tariffs on countries that buy oil and gas from Venezuela and the effect of tariffs in other industries like automobiles.

Brent crude futures rose 1 cent to $73.01 per barrel at 0121 GMT. U.S. West Texas Intermediate Crude rose 1 cent to $69.12.

Both benchmarks rose more than 1% after U.S. president Donald Trump announced that a 25% tax would be levied on countries that import oil and gas out of Venezuela.

Investors are concerned that Trump's tariffs will slow down the economy and reduce oil demand. However, the prospect of tighter U.S. restrictions on Venezuelan oil and Iranian oil, as well as his rapid policy changes, makes it difficult to make large investments, said Tsuyoshi Ueno. Senior economist at NLI Research Institute.

He added: "We expect WTI will stay around $70 throughout the rest of the calendar year with seasonal gains possible as the U.S. enters the driving season."

The U.S. imposed new sanctions last week to target Iranian oil exports.

On Monday, the Trump administration extended to May 27, a deadline for U.S. oil producer Chevron's Venezuela operations to be closed.

Trump said that automobile tariffs will be coming soon, even though he suggested that not all his threatened levies will be imposed by April 2, and that some countries might get a break. Wall Street interpreted this as a sign that he was flexible on a subject that has been roiling markets for weeks.

Four sources said that OPEC+ (the Organization of the Petroleum Exporting Countries) and its allies, including Russia, would likely stick with their plan to increase oil production for a second month consecutive in May. This is despite the steady price of oil and plans to make some members reduce their pumping to compensate past overproduction.

Investors are also watching the talks to end Ukraine's war, which could lead to an increase in supply of Russian crude oil to global markets.

U.S. officials and Russians concluded a day-long discussion on Monday, focusing on a proposal for a limited ceasefire between Kyiv (Ukraine) and Moscow (Russia). The talks were part of an effort by Washington to pave the path for wider peace negotiations. (Reporting and editing by Muralikumar Aantharaman; Reporting by Yuka obayashi)

(source: Reuters)