Oil Fluctuates Near 11-Week Low as Confusion Over Trump Tariffs
Oil fluctuated near its lowest close in 11 weeks as U.S. President Donald Trump’s tariff plans became increasingly unclear.
Brent crude edged higher above $73 a barrel, after settling Wednesday at its lowest since Dec. 10, amid conflicting announcements from the White House about action against Canada, Mexico and the European Union.
Crude was on track for its biggest monthly loss since September as the prospect of a trade war clouded the outlook for economic growth and energy demand in the U.S. and China, the world’s two largest consumers.
“The jury is still out on how Donald Trump’s political and economic agenda will affect growth,” said Tamas Varga, an analyst at brokerage PVM Oil Associates Ltd. in London. “Reciprocal tariffs, taxes and spending cuts could increase inflationary pressures and undermine economic prosperity.” At the same time, prices were supported by threats to global oil supplies. Trump has said he plans to revoke Chevron Corp.’s license to operate in Venezuela, threatening that country’s recovery. Trading giant Trafigura Group flagged the prospect of tighter sanctions on Iran as the biggest upside risk. The OPEC+ producer group is considering delaying the restart of stalled production. But there are also tentative signs that barrels in some regions could start flowing again.
OPEC member Iraq said it had reached a pact with Kurdistan to resume crude exports through a pipeline that was shut for nearly two years, without giving a timeframe. The restart has been mooted many times before without success. On the Ukrainian front, President Volodymyr Zelenskiy will visit the U.S. on Friday, President Trump said. That comes as the U.S. makes progress in discussions to end a three-year war between Moscow and Kyiv, a potential shift that could spur an easing of sanctions on Russian flows. Brent for April delivery rose 0.9% to $73.21 a barrel as of 10:06 a.m. in London. WTI for April delivery rose 1% to $69.28 a barrel.
Source: Bloomberg
