Oil Steadies Amidst Tariffs and Ukraine Talks
Crude oil prices remained stable as markets assessed the implications of President Donald Trump's potential retaliatory tariffs on U.S. trading partners. West Texas Intermediate (WTI) hovered above $71 per barrel after a slight dip on Thursday, while Brent crude settled close to $75.
Trump has signed an executive order to impose new tariffs on a country-by-country basis, potentially escalating trade tensions. Levies on crude oil from Canada and Mexico are expected next month, along with a steel tariff. However, the American Petroleum Institute expressed confidence that the U.S. oil industry can secure exemptions.
Despite the potential tariffs, oil is on track for a slight weekly gain, its first since mid-January. The recent tightening of U.S. sanctions on Russian crude has constrained supply. However, talks between Trump and Russian President Vladimir Putin on ending the conflict in Ukraine are fueling speculation that supply risks may ease.
The International Energy Agency (IEA) has lowered its forecast for a global oil surplus this year due to sanctions on Russia and Iran, which has prompted increased demand growth in Asia.