Shafaq News/ Oil prices inchedhigher on Tuesday after threats by U.S. President Donald Trump to imposesecondary tariffs on Russian crude and attack Iran, though worries about theimpact of a trade war on global growth capped gains.
Brent futures rose 16 cents, or0.2%, to $74.93 a barrel at 0330 GMT, while U.S. West Texas Intermediate crudefutures climbed 13 cents, or 0.2%, to $71.61.
A Reuters poll of 49 economists andanalysts in March projected that oil prices would remain under pressure thisyear from U.S. tariffs and economic slowdowns in India and China, while OPEC+increases supply.
Slower global growth would dent fueldemand, which might offset any reduction in supply due to Trump's threats.
After news of Trump's threatsinitially boosted prices on Monday, traders told Reuters they viewed thepresident's warnings to Russia, at least, as a bluff.
Trump, on Sunday, told NBC News thathe was very angry with Russian President Vladimir Putin and would imposesecondary tariffs of 25% to 50% on Russian oil buyers Moscow tries to blockefforts to end the war in Ukraine.
Tariffs on buyers of oil fromRussia, the world's second largest oil exporter, would disrupt global supplyand hurt Moscow's biggest customers, China and India.
Trump also threatened Iran withsimilar tariffs and bombings if Tehran did not reach an agreement with theWhite House over its nuclear program.
"For now, it appears to be justa threat to Russia and Iran. However, if it becomes a reality, it createsplenty of upside risk to the market given the significant oil export volumesfrom both countries," said ING commodities strategists on Tuesday.
The market will be watching forweekly inventory data from U.S. industry group the American Petroleum Institutelater on Tuesday, ahead of official statistics from the Energy InformationAdministration on Wednesday.
Five analysts surveyed by Reutersestimated on average that U.S. crude inventories fell by about 2.1 millionbarrels in the week to March 28.
Meanwhile, a weaker dollar onTuesday also kept the market buoyed. A softer dollar supports demand for oil asit makes crude less expensive for those holding other currencies.
(REUTERS)