Oil Prices Edge Up On Hopes For Auto Tariff Relief; US-Iran Talks In Focus
Oil prices edged up in Asian trade on Tuesday, helped by the possibility that President Donald Trump will temporarily halt auto tariffs and a boost in Chinese crude imports, while the market eyed US-Iran nuclear talks for clues on the demand outlook.
At 10:05 p.m. ET (02:05 GMT), Brent crude futures expiring in June were up 0.2% at $65.02 a barrel, while West Texas Intermediate WTI crude futures were up 0.3% at $61.25 a barrel.
Both contracts closed little changed on Monday and remained near four-year lows hit last week.
“The market is digesting fast-moving policy developments on the tariff front, while balancing that with the nuclear talks between the US and Iran. Clearly, the market is more focused on tariffs and what they mean for oil demand,” ING analysts said in a note. President Trump on Monday indicated potential exemptions from the 25% tariff on foreign vehicle imports, particularly from countries such as Mexico and Canada.
Previously, the administration announced exemptions for certain electronics, including smartphones and laptops, primarily from China.
The developments have eased some market concerns about escalating trade tensions.
However, investors remain cautious as the Trump administration moves forward with plans to potentially impose tariffs on semiconductor and pharmaceutical imports. The investigation into the tariffs was announced Monday in a notice posted to the Federal Register by the Commerce Department.
In China, crude oil imports rose sharply in March, driven by increased purchases of Iranian and Russian oil ahead of anticipated U.S. sanctions.
While China’s imports of key commodities were weak in the first quarter of 2025, the March increase provided some optimism.
Meanwhile, indirect talks between the U.S. and Iran began on April 12 in Muscat, Oman, aimed at reaching a nuclear peace agreement.
The outcome of those talks could influence the direction of U.S. sanctions on Iran’s oil exports.
The Organization of the Petroleum Exporting Countries (OPEC) on Monday revised its global oil demand growth forecast for 2025, reducing it by 150,000 barrels per day (bpd) to 1.30 million bpd.
The adjustment reflects weaker-than-expected first-quarter data and the impact of new U.S. trade tariffs.
In its monthly report, OPEC also lowered its global economic growth forecasts for 2025 and 2026.
The International Energy Agency will release its monthly oil report later in the day, which will reveal whether it has lowered its demand forecast in response to the recent tariff increases.
Source: Investing.com
