Oil Rises After Weekly Drop as Market Weighs Trump Tariffs
Oil rose after a series of weekly declines as markets weighed the impact of President Donald Trump’s ongoing tariffs.
Brent traded near $75 a barrel after a third weekly decline, the longest losing streak since September, while West Texas Intermediate hovered above $71. Chinese tariffs on U.S. goods are set to kick in Monday — retaliating against Trump’s levies that took effect last week.
The U.S. president flagged more tariffs on Sunday, this time on aluminum and steel, that would apply to all countries. The duties could hit the U.S. energy industry, including oil drillers, which rely on specialized steel that is not made in America. He did not say when the levies would start.
Oil has been trending lower since mid-January as a weak demand outlook and Trump’s tariffs hurt sentiment, more so than U.S. sanctions on Russian and Iranian oil. Several market indicators also pointed to weakness, including the so-called timespread, which measures short-term supply tightness.
Speculators increased their bearish bets on the U.S. oil benchmark by the most since October last week as Trump’s tariffs rattled markets. Net long positions for WTI were lower for a second week, while a corresponding gauge for Brent snapped a five-week advance.
“The market is largely focused on the weaker demand story due to rising trade tensions,” said Soni Kumari, a commodities strategist at ANZ Group Holdings Ltd. However, “Trump’s policies will remain supportive of oil,” he said, in part because of the possibility of expanded sanctions on Russia and Iran.
Brent for April settlement rose 0.7% to $75.20 a barrel at 1:40 p.m. in Singapore. WTI for March delivery rose 0.7% to $71.52 a barrel.
Source: Bloomberg
