Oil gains as market adjusts to risks posed by US trade policies
Oil prices gained on Friday as oil markets adjusted to the United States becoming a source of geopolitical risk following the imposition and then suspension of tariffs by U.S. President Donald Trump.
Brent crude futures were up 20 cents on the day, or 0.32%, at $63.53 a barrel by 1526 GMT while U.S. West Texas Intermediate crude rose 19 cents, or 0.32%, to $60.26.
"The U.S. being a geopolitical risk is new for the market," said John Kilduff, partner with Again Capital LLC. "We’ll have this reordering of the chessboard like we did after Russia invaded Ukraine."
Despite Friday’s slight gains, Brent and WTI were poised for their second straight weekly loss on Friday against a backdrop of investor concern over recession sparked by the burgeoning trade war between the United States and China.
China announced on Friday that it will impose a 125% tariff on U.S. goods from Saturday, up from the previously announced 84%, after U.S. President Donald Trump raised tariffs against China to 145% on Thursday.
Trump this week paused heavy tariffs against dozens of other trading partners, but a prolonged dispute between the world’s two biggest economies is likely to reduce global trade volumes and disrupt trading routes, weighing on global economic growth and reducing demand for oil.
Source: Reuters
