Oil Hovers Amid Tariff Turmoil
Oil prices have stabilized after a series of weekly declines, as investors weigh the impact of President Trump's ongoing tariff actions.
Brent crude is trading below $75 a barrel, extending its losing streak to three weeks, the longest since September. West Texas Intermediate (WTI) is hovering around $71.
China is set to implement retaliatory tariffs on US goods on Monday in response to Trump's levies imposed last week. The US president has also threatened additional tariffs on steel and aluminum from all countries.
These measures could have ripple effects on the US energy industry, particularly oil drillers who rely on specialty steel that is not domestically produced.
Oil prices have been trending downward since mid-January, pressured by weak demand prospects and Trump's tariffs, which have overshadowed US sanctions on Russian and Iranian oil.
Market indicators such as timespreads, which measure near-term supply tightness, are also signaling weakness. Speculators increased their bearish bets against WTI last week, the most since October, as Trump's tariff actions have whipsawed markets.
Net long positions for WTI have declined for a second consecutive week, while Brent's have snapped a five-week streak of gains.