Oil prices rise on supply, tariff fears
Shafaq News/ Oil prices edgedup on Thursday on concerns about tighter global supply after U.S. tariffthreats on Venezuelan oil buyers and earlier sanctions on Iranian oil buyers,while traders weighed the impact of U.S. President Donald Trump's auto tariffs.
Brent crude futures gained 7 cents, or 0.1%, at $73.86 abarrel. U.S. West Texas Intermediate crude futures rose 10 cents, or 0.1%, to$69.75 a barrel at 0406 GMT.
On Wednesday, oil prices roseby around 1% on government data showing U.S. crude oil and fuel inventoriesfell last week, and on the U.S. threat of tariffs on nations buying Venezuelancrude.
“The recent (price) uptrendseems to be factoring in the noise around tariffs for buyers of Venezuela oil.We have maintained that Trump's policies on Iran and Venezuela present thebiggest upside risk for oil prices, so that is kind of partially playing outcurrently,” said DBS Bank's energy sector team lead Suvro Sarkar.
India's Reliance Industries(RELI.NS), opens new tab, operator of the world's biggest refining complex,will halt Venezuelan oil imports following the tariff announcement, sourcessaid on Wednesday.
Sarkar said, however, DBS doesnot see prices returning to the higher levels seen in early 2025 as demandconcerns stemming from "US policy uncertainty and tariff wars will comeback to haunt the market at some point again".
Traders and investors werealso assessing the impact on oil demand from U.S. President Trump's latestannouncement of a 25% tariff on imported cars and light trucks from next week.The view was that it could drive auto prices up, potentially impacting demandfor oil, but also slow down the switch to greener cars.
Oil prices in Europe and theU.S. rose on Tuesday for a fifth straight day on expectations that globalsupply may tighten.
“The news around Trump'stariffs on autos may actually turn out to be a net positive for crude oilbecause the rise in new car prices from tariffs will mean it slows down theswitch to newer, more fuel-efficient models,” said Tony Sycamore, a marketanalyst at IG.
U.S. oil and gas activityincreased slightly in the first quarter, but energy executives were pessimisticabout the sector's outlook, a Dallas Fed survey showed, as separate Trumptariffs on steel and aluminium could drive up costs for drilling and pipelineconstruction.
(Reuters)
