Oil Edges Higher as Traders Weigh Fallout From Trump’s Tariffs
Oil gained at the start of the week as the market prepared for President Donald Trump’s tariffs on major US trading partners including China and any potential retaliation.
Brent climbed above $73 a barrel after posting the biggest monthly loss since September, while West Texas Intermediate futures traded near $70. The levies on China, Mexico and Canada, which are scheduled to start on Tuesday, may yet be delayed, but any reprieve would likely be temporary.
Trump’s tariffs have raised the prospect of trade wars on multiple fronts and injected uncertainty into global markets. Oil has been on a downtrend since mid-January as a lackluster demand outlook added to headwinds, despite US sanctions that have disrupted Russian and Iranian crude flows.
The market will also be watching for any commentary around stimulus measures from China’s biggest political huddle of the year. Delegates will gather Wednesday in Beijing.
Brent for May settlement rose 0.7%% to $73.29 a barrel at 7:37 a.m. in Singapore.
WTI for April delivery was 0.6%% higher at $70.21 a barrel.
Source : Bloomberg