WTI Oil Falls Off a Five-Month High as Focus Turns to Trump's Promised Tariffs
West Texas Intermediate (WTI) crude oil fell off a five-month high on Tuesday that followed tightened U.S. sanctions on Russian oil exports as attention turns to the impact of President-elect Trump's promised tariffs on U.S. imports.
WTI crude oil for February delivery closed down US$1.32 to settle at US$77.50 per barrel, while March Brent crude was last seen down US$0.80 to US$80.21.
The outgoing Biden Administration on Friday imposed new sanctions on Russian oil exports, adding new restrictions on Russian oil producers Gazprom Neft and Surgutneftegas, as well as their subsidiaries. It also sanctioned 183 vessels and dozens of oil traders, oilfield service providers, insurance companies and energy officials.
The measures are likely to cut Russian earnings from its oil exports and force China and India, its largest customers, to seek alternative supplies. However they come ahead of expected tariffs of up to 60% on Chinese imports by the incoming Trump Administration that are likely to slow demand from the No.1 importer if imposed.
"Crude's recent strong rally has paused with Brent trading softer after finding resistance at the October high. Following the initial run up amid the prospect of a short-term drop in Russian supply from harsher US sanctions, traders have once again turned their attention to the potential negative impact on demand from trade tariffs," Saxo Bank noted.
Source : MT Newswires
