Oil Edges Higher After Three-Day Drop with Trade War in Focus
Oil prices edged higher after three days of declines as the global market mood calmed slightly, with traders weighing the latest tariff moves by U.S. President Donald Trump.
West Texas Intermediate crude rose above $61 a barrel in early Asian trade after falling 15% over three sessions. Brent crude settled above $64, near a four-year low. Trump on Monday threatened to impose an additional 50% import tax on China, the biggest crude importer, even as he hinted at talks with other countries.
Crude prices along with other commodities, global equities and bonds have been volatile this month as the U.S. president continues his aggressive trade policies. The unrest has stoked concerns about a global slowdown or recession that would hurt energy demand. At the same time, OPEC+ delivered a larger-than-expected output increase, hurting the outlook for a balanced oil market. The escalating trade war has prompted banks including Goldman Sachs Group Inc. and Morgan Stanley to cut their oil price forecasts for the coming quarter. Societe Generale SA also cut its outlook, citing the threat posed by U.S. tariffs to China’s economy and global crude demand
WTI for May delivery rose 1.2% to $61.40 a barrel at 7:21 a.m. in Singapore.
Brent for June settlement closed 2.1% lower at $64.21 a barrel on Monday.
Source: Bloomberg
