Oil Steadies as Traders Weigh Trump’s Threat of Russia Penalties
Oil steadied as investors weighed the fallout from President Donald Trump’s threat of fresh penalties on Russian crude if a ceasefire with Ukraine could not be reached.
Brent’s June contract was little changed near $73 a barrel, while West Texas Intermediate was above $69. In comments reported by NBC News on Sunday, Trump said he was “very angry” with his counterpart Vladimir Putin and raised the prospect of secondary tariffs. The US president later told reporters on Air Force One that he wasn’t implementing oil sanctions right now.
Russia is one of the world’s three largest oil producers, meaning any concerted attempt to punish Putin could have a far-reaching effect on the broader crude market. India and China, which have become the key buyers since Moscow’s full-scale invasion of Ukraine, would face particular pressure.
The OPEC+ producer’s crude exports hit a five-month high in March and US sanctions on the nation’s oil tanker fleet are showing signs of faltering. Trump told NBC in a phone interview that he would impose penalties if a deal on Ukraine is not reached “and if I think it was Russia’s fault.”
Oil futures are on track for a monthly advance after other US tariffs and sanctions raised concerns over potential disruptions to crude flows, though major traders remain bearish on the outlook for the rest of the year because of rising supply. OPEC+ is due to start reviving idled production next month.
The Trump administration is due to implement reciprocal levies on April 2, including a duty on nations that buy Venezuelan crude, the latest in a series of tariffs that’s caused volatility in global markets.
Source: Bloomberg
