Oil Prices Slip Amid Tariff Threats and Russia Sanctions
by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil edged lower after President Donald Trump threatened tariffs on China and the European Union, while traders continued to assess the fallout from unprecedented US sanctions on Russia.
West Texas Intermediate settled below $76 a barrel after swinging between gains and losses for much of Wednesday’s session. Crude’s recent run of declines has been partly spurred by the bearish implications of a renewed global trade conflict that poses risks to consumption and growth.
Trump on Wednesday widened his threats to include a 10% tariff on China and the EU, two of the world’s largest energy markets. The new threats follow Trump’s plans to impose tariffs as high as 25% on goods from Canada and Mexico, which are major crude suppliers to the US.
The possibility of tariffs on Canadian oil already is pushing a flood of crude out of the country to the US to beat potential levies. Still, the Canada tariffs would result in higher gasoline costs for American consumers, Goldman Sachs Group Inc. warned last year.
Oil traders also are still digesting the most comprehensive set of sanctions on Russian oil to date. State-owned refiner Indian Oil Corp. said it sees a supply hit of up to 2 million barrels a day from the measures. The value of Dubai crude has soared relative to other benchmarks as traders scramble for alternative supplies. Trump said he’s likely to impose more penalties on Moscow if President Vladimir Putin doesn’t negotiate on Ukraine.
Crude remains higher so far this year, helped by the Russia sanctions and frigid weather in the northern hemisphere. A historic winter storm caused bitter cold from Texas to North Carolina Wednesday, upending regional energy markets.
“Oil’s 2025 uptrend reflects unsustainable bullish momentum, primarily fueled by transient factors: winter demand, a short-term Chinese export boost ahead of US tariff risks and hedging against upside risks driven by U.S. sanctions on Russian oil,” said Razan Hilal, a market analyst at Forex.com.
The recent run of declines has been limited by WTI’s 200-day moving average, which is serving as a floor for losses.
Oil Prices:
- WTI for March delivery fell 39 cents to settle at $75.44 a barrel.
- Brent for March settlement dropped 29 cents to settle at $79 a barrel.
by Bloomberg | Julia Fanzeres
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas