Oil Stabilizes After Russian Supply Tightening Amidst Tariff Concerns
West Texas Intermediate (WTI) hovers above $72 per barrel after surging nearly 2% on Monday, while Brent remains elevated near $76 for a second consecutive session. Data from Russia reveals that production in February fell further below the country's OPEC+ quota.
Despite an initial surge due to winter demand and US sanctions on Russian crude, oil prices have declined in recent weeks as President Trump's expanding tariffs threaten trade conflicts. Trump recently imposed a 25% tariff on all steel and aluminum imports, including from Canada and Mexico.
Signs of tightness persist in certain market segments, particularly the Middle East, where reduced competition has allowed producers to increase prices for Asian customers. In Europe, escalating natural gas prices have shifted demand towards oil, potentially boosting consumption.