Oil Gains as Traders Weigh Trump’s Russia Statement, US Tariffs
Oil rose — after falling more than 2% on Thursday — as traders shifted focus toward a planned announcement on Russia by President Donald Trump next week, while digesting another volley of US tariff threats.
Brent traded near $69 a barrel and West Texas Intermediate was around $67. The US president said he planned a “major statement” on Russia on Monday, and reiterated criticism of his counterpart Vladimir Putin over continued attacks on Ukraine. He made the remarks in an interview with NBC News.
Trump also flagged blanket levies of as much as 20% on most trading partners, continuing a week of tariff threats that have raised concerns his policies could dent economic growth. The duties are set to take effect Aug. 1.
Brent is on track for a weekly gain, despite Trump’s sweeping tariffs and OPEC+ announcing a further output boost for August over the weekend. There are signs of tightness in the physical market, and oil demand typically peaks during the Northern Hemisphere summer.
In his interview with NBC, Trump said he expected the Senate to pass a tougher Russia sanctions bill. He didn’t elaborate on the planned statement.
“Tougher sanctions on Russia, particularly oil-related, have the potential to alter the outlook dramatically,” said Warren Patterson, the head of commodities strategy for ING Groep NV in Singapore. “The oil market remains relatively tight through the Northern Hemisphere summer, which should continue to offer some support to prices in the near term.”
Separately, OPEC+ is discussing a pause to hikes after an increase tentatively planned for September, according to delegates, which would unwind its most recent output cuts a year earlier than expected. Even before the news on an August boost, there had been concerns about a looming glut by year-end.
Source: Bloomberg
