Oil Near Lows of Year as Trump Weighs on Sentiment
Oil is holding steady near its lowest point of the year as President Donald Trump’s geopolitical position and threats of tariffs on energy weigh on the outlook.
West Texas Intermediate is trading above $71 a barrel after falling 2.3% on Wednesday to wipe out all of this year’s gains, while Brent crude settled below $75. China is set to impose retaliatory tariffs on the U.S. starting Monday, sparking a trade war that could hurt global growth, while Trump’s proposed takeover of Gaza has been widely condemned.
Investors have been pulled out of crude and fuel markets since Trump’s inauguration, sending prices tumbling, although concerns remain over further curbs on supplies from Iran and Russia, as well as over pending sanctions on crude from Canada and Mexico. Some Middle Eastern grades have strengthened as a result, with Saudi Arabia raising prices of its flagship variety to Asia by the most in more than two years.
In the U.S., the nation’s commercial crude stockpiles rose by the most in almost a year, thanks in part to higher imports from Canada before the initial levies took effect. Levels typically start to rise around this time of year, though they are still below seasonal averages.
Source: Bloomberg
