Oil companies slip as Trump's tariffs spark trade war and fuel demand fears

Shares of oil companies decline in pre-market trading after U.S. President Donald Trump announced sweeping new tariffs that investors worry will inflame a global trade war and limit fuel demand

Brent futures LCOc1 were down 3% at $72.71/bbl while U.S. West Texas Intermediate crude futures CLc1 decline 3.15% to $69.45/bbl by 0824 GMT; adding to decline was sharp rise in U.S. crude oil stockpiles O/R

Trump on Wednesday unveiled a 10% minimum tariff on most goods imported to the United States

Import of oil, gas and refined products were exempted from the new tariffs - White House

U.S. oil majors Exxon Mobil XOM.N down 2.1% while Chevron CVX.N falls 2.7%

Oil and gas producer Occidental Petroleum OXY.N down 2.5%, while top oilfield services company SLB SLB.N declines 3.4%

Europe's oil cos .SXEP down 1.61%

"This (tariffs) threatens to drive up inflation and stall worldwide economic growth, with a consequent drop in demand for oil," says Ashley Kelty, analyst at Panmure Liberum

Would expect even more volatility in the near term, as the effective tariffs fluctuate, as countries try to negotiate lower rates or enact retaliatory tariffs - Kelty