Oil Edges Higher Despite Weaker Demand and Tariffs
Oil prices rose modestly after a string of weekly declines, as the market assessed the aftermath of President Donald Trump's tariffs.
Brent crude hovered around $75 per barrel on Monday, following its third consecutive weekly loss, its longest since September. West Texas Intermediate (WTI) surpassed $71 per barrel.
China's retaliatory tariffs on US goods, which took effect last week, are expected to begin on Monday. Trump also hinted at broader tariffs on aluminum and steel from all countries, signaling a possible ripple effect on the US energy sector, particularly for oil drillers dependent on specialty steel imports.
Since mid-January, oil prices have been trending downwards due to weak demand forecasts and Trump's tariff actions, which have outweighed US sanctions on Russian and Iranian oil. Market indicators, such as timespreads, suggest potential supply weakness.
Speculators increased their bearish positions on WTI last week, marking the largest such move since October, as Trump's tariffs caused market volatility. Net long positions for WTI declined for a second week, while Brent's five-week streak of gains ended.