Oil Hovers Amid Russia's Sanctions Test, Libya Resumes Exports
Oil prices remain steady after initial gains, as Russia gauges the effectiveness of US sanctions on its crude. The move counters concerns raised by President Trump's threat of widespread tariffs.
Russia Circumvents Sanctions
Russia is shipping sanctioned oil to India on tankers blacklisted by the US Treasury, testing Moscow's ability to evade restrictions. The nation's oil product exports are poised to reach an 11-month high of 2.3 million barrels per day.
Libya Resumes Loadings
Oil exports have resumed from two key eastern Libyan ports after protests demanding their closure. The potential halt could have impacted hundreds of thousands of barrels of exports.
Trump's Tariffs Implications
Oil prices initially surged on Monday after Trump's announcement favoring higher tariffs on various foreign-made goods, including steel, aluminum, and copper.
Market Dynamics
"Today's price action reflects a risk-asset bounce, offset by easing Libya supply concerns," said Rebecca Babin of CIBC Private Wealth Group. "Uncertainties surrounding Trump make it challenging to accurately assess fundamentals."
Outlook
Oil markets have experienced volatility this year due to US sanctions and severe weather conditions. Analysts have become more optimistic, with Bank of America predicting a surplus reduction this year.
OPEC Meeting
Traders anticipate that OPEC and its allies will maintain their current supply policy at a meeting next week, despite pressure from Trump to increase production. The group plans to gradually restore output from April onward.