Oil Prices Steady as Trump’s Reciprocal Tariffs Add to Trade Tensions
Oil prices were steady as the market digested the impact of President Donald Trump’s order on potential reciprocal tariffs on U.S. trading partners.
West Texas Intermediate crude was above $71 a barrel after a modest decline on Thursday, while Brent settled near $75. The U.S. president signed a measure to propose new levies on a country-by-country basis. It could take weeks or months to complete, but it raises the prospect of greater trade tensions.
Tariffs on Canadian and Mexican crude are set to kick in next month, along with levies on steel, but the U.S. oil industry is confident it can get an exemption from the Trump administration, according to the American Petroleum Institute.
Oil prices are still headed for a slight gain this week, the first since mid-January, on signs that U.S. sanctions are tightening the flow of Russian crude. However, Trump and his counterpart Vladimir Putin have agreed to negotiate an end to the war in Ukraine, raising speculation that supply risks could ease.
Sanctions on Russia, along with Iran, prompted the International Energy Agency to once again cut its expectations for a global oil surplus this year. The prospect of stronger demand growth in Asia contributed to the lower IEA forecast, according to a monthly report released Thursday.
Source: Bloomberg
