Oil Rises as Traders Mind Libya Risks
Oil recovered after plunging nearly 2% on Monday, as traders weighed risks to crude supplies from key Libyan ports against President Trump’s call for universal trade tariffs.
Brent crude futures edged closer to $78 a barrel. Protesters in Libya have demanded that two major ports stop loading crude, which could affect hundreds of thousands of barrels of exports. The stoppages at the Ras Lanuf and Es Sider hubs in the east of the country began Tuesday, people with direct knowledge of the situation said.
In a series of remarks, Trump said he supports blanket tariffs “much larger” than 2.5% and fees on some foreign-made goods in the “near future,” listing products including steel, aluminum and copper.
The crude market has been in the midst of a volatile start to the year, as U.S. sanctions on Russian oil and cold weather have driven up prices and sent barrels soaring in the Middle East. Speculators have piled into the market since then, heightening the risk of a pullback like the one seen Monday, which was the biggest since November. The moves were also compounded by sharp declines in the broader market.
"Stabilization in the stock market and reports of protests at two Libyan oil ports, which have halted the export of several hundred thousand barrels of oil per day, are supporting prices this morning," said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management.
In Canada, Alberta's premier said the country should prepare for tariffs on Feb. 1, a date highlighted by Trump in previous remarks. More than half of U.S. crude imports come from the northern neighbor, much of it from the oil-rich province.
Source: Bloomberg
