Oil prices rose on Wednesday, as traders prepared for the new US tariffs announced at 2000 GMT, which raised concerns about a possible escalation in global trade tensions and its impact on crude demand.
Brent Future 13 cents, or 0.2 %, increased to $ 74.62 a barrel by 10:53 am EST (1453 GMT), while US crude in West Texas has gained 31 cents, or 0.4 %, to $ 71.51 a barrel.
Investors have greatly ignored the US government data showing the construction of unexpected raw stock of 6.2 million barrels last week. The increase in part was attributed to a sharp rise in Canadian crude imports, and perhaps in anticipation of new American business restrictions.
The White House confirmed that President Donald Trump will provide a new tariff, although the details specified about its scope are still unclear. The advertisement, which Trump referred to as “Liberation Day”, is expected to provide mutual duties that can reshape commercial flows and affect economic growth.
The oil markets stopped after the march last month, as Brent crude faces resistance over $ 75. The primary focus has turned from the supply fears that the sanctions drive on the potential impact of trade measures on demand. Customs tariffs on raw imports can pay the prices of refined products, which increases the complexity of market dynamics.
Trump also warned of the secondary tariff for Russian oil, as well as new sanctions on Iran aimed at further limiting its exports. Meanwhile, Russia-the second largest oil exporter-controls the way to export the main black sea oil. Marsa was suspended in the port of Novorossiisk just one day after the imposition of restrictions on loads from the main Caspian pipeline.
Russia produces about 9 million barrels of oil per day, or nearly 10 % of the global offer. Its ports also act as a major export channel for Kazakhstan crude. With the development of new trade policies, market participants closely monitor how these developments will affect global energy flows and pricing trends.
