Oil Rises After Monday’s Plunge on Trump’s Powell Criticism
Oil edged higher after falling on Monday following President Donald Trump’s escalating criticism of Federal Reserve Chairman Jerome Powell, rattling global markets.
Brent rose near $67 a barrel after dropping 2.5% in the previous session, its biggest drop in more than a week, while West Texas Intermediate traded below $64. Trump warned that the U.S. economy could slow if the central bank doesn’t move to cut interest rates, his latest attack on Powell.
The president has been considering firing the Fed chairman, prompting investors to sell stocks, bonds and the U.S. dollar on Monday. Oil was swept up in the chaos, extending this month’s slump that has been exacerbated by concerns over rising tensions between the U.S. and its major trading partners.
“It’s hard to see any bullish factors on the horizon for crude,” said Vandana Hari, founder of Vanda Insights in Singapore. Investors will be focused on any trade-related comments from meetings of the World Bank and International Monetary Fund this week, which could affect market sentiment, she added. The return of idle crude production by OPEC+ this month has stoked concerns about oversupply and added pressure on prices.
Part of the Brent futures curve recently fell into contango — a bearish structure that signals ample supply. Brent for June settlement rose 0.7% to $66.72 a barrel as of 1:01 p.m. in Singapore. WTI for May delivery, which expires Tuesday, rose 1% to $63.73 a barrel. The more active June contract rose 0.8% to $62.93.
Source: Bloomberg
