Oil Steadies Near Year's Low as Trump Threats Weigh
West Texas Intermediate (WTI) remains near its lowest point of the year as geopolitical tensions and tariff threats from President Donald Trump cloud the outlook for the energy market.
Brent crude closed below $75 per barrel as China prepares to impose retaliatory tariffs on the U.S. starting Monday, potentially escalating a trade war that could hinder global growth. Trump's proposal to take over Gaza has also drawn widespread condemnation, adding to concerns about the stability of key oil-producing regions.
Investors have withdrawn from crude and fuel markets since Trump's inauguration, contributing to a decline in prices. However, concerns persist about potential supply constraints from Iran, Russia, and delayed sanctions on oil imports from Canada and Mexico.
Certain Middle Eastern oil grades have gained strength, with Saudi Arabia raising the price of its flagship blend to Asia by the highest margin in over two years. In the U.S., commercial crude stockpiles increased by the most in nearly a year, partly due to higher imports from Canada ahead of the expected imposition of tariffs.
While inventory levels typically rise around this time of year, they remain below seasonal averages.