Oil ticks higher as investors weigh new US tariffs
OIL prices ticked higher on Monday even as investors weighed US President Donald Trump’s latest tariff threat, this time on all steel and aluminium imports, which could dampen global economic growth and energy demand.
Brent crude futures climbed 40 cents, or 0.5 per cent, to US$75.06 a barrel by 0133 GMT while US West Texas Intermediate crude was at US$71.38 a barrel, up 38 cents, or 0.5 per cent. The market posted its third consecutive weekly decline last week on concerns about a global trade war.
Trump said he will announce on Monday 25 per cent tariffs on all steel and aluminium imports into the US in another major escalation of his trade policy overhaul.
Just a week ago, the president announced tariffs on Canada, Mexico and China, but suspended those for its neighbouring countries the next day.
In light of Trump’s temporary backdown last week, investors appeared to be shrugging off the steel and aluminium tariff threat for now, Tony Sycamore, a Sydney-based analyst at IG said.
“The market has realised tariff headlines are likely to continue in the weeks and months ahead,” he said, adding that there’s an equal chance they could be walked back or even increased at some point in the near future.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
“So perhaps investors are coming to the conclusion it’s not the best course of action to react to every headline negatively.”
China’s retaliatory tariffs on some US exports are due to take effect on Monday, with no sign as yet of progress between Beijing and Washington.
Oil and gas traders are seeking waivers from Beijing for US crude and liquefied natural gas imports.
Trump said on Sunday that the US is making progress with Russia to end the Ukraine war but declined to provide details about any communications he had with Russian President Vladimir Putin.
Sanctions imposed on Russian oil trade on Jan 10 disrupted Moscow’s supplies to its top clients China and India.
Washington also stepped up pressure on Iran last week, with the US Treasury imposing new sanctions on a few individuals and tankers that help to ship millions of barrels of Iranian crude oil per year to China. REUTERS
Share with us your feedback on BT's products and services
