Oil Steady, Red Sea in Focus?
Oil prices were steady as investors turned their attention to the potential impact of U.S. levies and escalating hostilities in the Red Sea.
West Texas Intermediate crude futures were trading near $68 a barrel after rising 1.4% in the previous session. Brent crude futures settled above $69. President Donald Trump announced the first higher tariffs on major trading partners, and signed an executive order delaying the new duties until Aug. 1.
The oil market has been volatile in recent weeks following a war between Israel and Iran, with a fragile ceasefire now in place, but tensions in the Middle East have again escalated after attacks in the Red Sea. A second ship was targeted near Yemen on Monday, hours after the Iran-backed Houthis claimed responsibility for an earlier attack on a ship in the same region. Oil prices closed higher on Monday despite a larger-than-expected increase in supply from OPEC+ for August. The group’s officials cited summer demand as one reason for their optimism that the extra barrels could be absorbed by the market, and Saudi Arabia raised prices for its main crude to Asia.
WTI for August delivery was little changed at $67.81 a barrel at 7:33 a.m. in Singapore.
Brent for September delivery closed 1.9% higher at $69.58 a barrel on Monday.
Source: Bloomberg
