Oil rises on tariff exemptions and rebound in Chinese imports
Oil prices rose more than 1% on Monday after U.S. exclusions on some tariffs and Chinese data showing a sharp rebound in crude imports in March, but gains were capped by concerns that the trade war between the United States and China could weaken global economic growth and dent fuel demand.
Brent crude futures rose by 83 cents, or 1.3%, to $65.59 a barrel by 1246 GMT. U.S. West Texas Intermediate crude was up 81 cents, or 1.3%, at $62.31.
"The news about the exemptions on tariffs has helped lift sentiment across markets," said Harry Tchilinguirian, global head of research at Onyx Capital Group. "But there is still a lot of fragility; you have policy risk around this erratic approach to trade that continues to weigh on markets."
Late on Friday U.S. President Donald Trump's administration granted exclusions from steep tariffs on smartphones, computers and some other electronic goods imported largely from China. It was the latest in a series of policy announcements that imposed tariffs and then walked them back, spurring uncertainty for investors and businesses.
Trump said on Sunday that he would announce the tariff rate on imported semiconductors over the next week.
China's crude oil imports in March rebounded sharply from the previous two months and were up nearly 5% from a year earlier, data showed on Monday, boosted by Iranian oil and a rebound in Russian deliveries.
However, Brent and WTI have lost about $10 a barrel since the start of the month and analysts have lowered oil price forecasts as the trade war between the world's two largest economies has intensified.
The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report on Monday that global oil demand will rise by 1.3 million barrels per day (bpd) in 2025, down by 150,000 bpd from last month's forecast, citing trade tariffs among the reasons.
Source : Reuters
