Oil Pushes Higher as Trump Signals No Intention to Ax Powell
Oil extended gains as President Donald Trump said he had no intention of firing Federal Reserve Chair Jerome Powell, while an industry report pointed to a large decline in US crude stockpiles.
West Texas Intermediate rose above $64 a barrel and US equity futures surged after Trump’s comments on the Fed chief late Tuesday. The president's criticism of Powell prompted a global selloff on Monday before oil futures and other financial assets clawed back some losses in the following session.
Crude's rebound on Tuesday was aided by speculation that Iranian flows may be curtailed after the US announced sanctions against liquefied petroleum gas magnate Seyed Asadoollah Emamjomeh and his corporate network. The Trump administration has previously vowed “maximum pressure” on Tehran.
US crude inventories, meanwhile, fell by 4.57 million barrels last week, the American Petroleum Institute reported. That would be the biggest draw since November if confirmed by official figures later Wednesday.
Oil is still on track for a heavy monthly loss on concerns that rising tensions between US and its top trading partners could stifle economic growth and throttle energy demand. In a closed-door investor summit, US Treasury Secretary Scott Bessent said the tariff standoff with China cannot be sustained and that the two countries will have to find ways to de-escalate.
WTI for June delivery rose 1% to $64.29 a barrel at 7:29 a.m.in Singapore.
Brent for June settlement closed 1.8% higher at $67.44 a barrel on Tuesday.
Source: Bloomberg
