Oil Prices Rise on Tariffs Jitters
Oil prices rebounded after a series of weekly declines, as the market navigates the potential impact of President Donald Trump's tariffs.
Brent crude traded near $75 a barrel, ending a three-week losing streak. West Texas Intermediate (WTI) surpassed $71 a barrel.
Chinese tariffs on U.S. goods will come into effect on Monday, retaliating against Trump's levies imposed last week. The president has threatened additional tariffs on aluminum and steel from all countries.
These duties could affect the U.S. energy industry, including oil drillers who rely on specialized steel not produced domestically.
Oil prices have been trending downward since mid-January due to a weak demand outlook and Trump's tariffs, outweighing U.S. sanctions on Russian and Iranian oil.
Market indicators, such as timespreads, suggest a supply glut in the near term. Speculators increased their bearish bets against the WTI oil benchmark last week, reflecting the volatility caused by Trump's tariff policies.
"Trade tensions have been the primary focus, weighing on demand," said Soni Kumari, a commodity strategist with ANZ Group Holdings. However, she believes Trump's policies could ultimately support oil prices, potentially through expanded sanctions on Russia and Iran.