Oil prices ease despite Trump warning of possible tariffs on Russian buyers
Shafaq News/ Oil prices slipped on Monday, heading for a modestquarterly loss, despite a warning from U.S. President Donald Trump that he mayimpose secondary tariffs on buyers of Russian oil if he feels Moscow isblocking his efforts to end the war in Ukraine.
The more active June Brent crude futures fell 30 cents, or 0.4%, to$72.46 a barrel by 0330 GMT, while U.S. West Texas Intermediate crude declined33 cents, or 0.5%, to $69.03 a barrel. Front-month Brent , which was down 26cents, or 0.4%, at $73.36, expires later on Monday.
Both benchmarks were on track to end the month slightly lower, and posttheir first quarterly drop in two quarters.
Trump said on Sunday he was "pissed off" at Russian PresidentVladimir Putin and will impose 25%-50% secondary tariffs on buyers of Russianoil if he feels Moscow is hindering his efforts to end the war in Ukraine.Trump said he could impose the new trade measures within a month.
"There are a couple of ways to read the headlines and the pricesell-off. The first is that the market isn’t buying into Trump's threats anddoesn’t believe it," IG market analyst Tony Sycamore said.
"The second is that Trump's threats, if enacted, would be anotherstep down the pathway towards a trade war, which will weigh on global growthand demand for crude oil."
Trump also threatened Iran on Sunday with bombing and secondary tariffsif Tehran did not come to an agreement with Washington over its nuclearprogram.
Meanwhile, the OPEC+ group, which comprises OPEC and allies led by Russia,is set to begin its program of monthly increases in oil production in April.The group will likely continue to raise oil output in May, Reuters reportedlast week.
"We expect WTI to stay in a range of $65 to $75 for now as themarket assesses the impact of Trump tariffs on oil supply and global economy,as well as the supply situation from the U.S. and OPEC+," said YukiTakashima, an economist at Nomura Securities.
Top oil exporter Saudi Arabia may lower its crude prices for Asianbuyers in May to a three-month low, tracking the steep declines in benchmarkprices this month, traders said.
Elsewhere, Iran has lowered the price of its light crude oil grade forAsian buyers to $3.95 a barrel above the Oman/Dubai average for April.
Talks to restart Kurdish oil exports through the Iraq-Turkey pipelinehave hit a snag as a lack of clarity over payments and contracts persists, twosources with direct knowledge of the matter told Reuters.
(Reuters)
