Oil Climbs on Supply Worries, Trump Tariffs Check Gains
Oil prices extended gains on Tuesday amid concerns over Russian and Iranian oil supply and sanctions threats despite worries that escalating trade tariffs could dampen global economic growth.
Brent crude futures were up $1.20, or 1.6%, at $77.06 a barrel by 1409 GMT while U.S. West Texas Intermediate crude rose $1.11, or 1.5%, to $73.43.
Both contracts registered gains of close to 2% in the previous session after three consecutive weekly losses.
"With the U.S. bearing down on Iranian exports and sanctions still biting into Russian flows, Asian crude grades remain firm and underpin the rally from yesterday," said PVM oil analyst John Evans.
Shipping of Russian oil to leading importers China and India has been significantly disrupted by U.S. sanctions targeting tankers, producers and insurers.
Adding to supply jitters are U.S. sanctions on networks shipping Iranian oil to China after President Donald Trump restored his "maximum pressure" on Iranian oil exports last week.
Equinor's Johan Sverdrup oilfield in the North Sea has suffered a power outage that is expected to last until 1615 GMT on Tuesday, a regulatory statement posted on the Nord Pool (NASDAQ:POOL) web site showed.
But price gains were kept in check by Trump's latest trade tariffs, which could dampen global growth and energy demand.
On Monday Trump raised tariffs on steel and aluminium imports to the U.S. to 25% "without exceptions or exemptions" in measures that could trigger a multi-front trade war.
The tariff will hit millions of tons of steel and aluminium imports from Canada, Brazil, Mexico, South Korea and other countries.
Source : Reuters
