Oil Steadies Amidst Tariff Uncertainty
Brent and West Texas Intermediate (WTI) crude prices have stabilized as markets assess the potential impact of President Trump's proposed reciprocal tariffs on foreign trading partners.
Trump has signed an order authorizing country-specific tariffs, a process that could take weeks or months to implement. The American Petroleum Institute remains optimistic that the U.S. oil industry will secure exemptions from the measures.
Despite the tariff uncertainty, crude prices are poised for a modest weekly gain, driven by perceived tightening of Russian crude flows due to U.S. sanctions.
However, discussions between Trump and Russian President Vladimir Putin regarding a potential resolution to the conflict in Ukraine have raised speculation of eased supply risks.
Sanctions on Russia and Iran have prompted the International Energy Agency (IEA) to revise its global oil surplus forecast downward. This revision also reflects expectations of robust demand growth in Asia.