April 11: Brent and West Texas Intermediate crude ascended more than one dollar on Friday after US Energy Minister Chris Wright said that the United States could end Iranian oil exports as part of an effort to make the Islamic Republic to document its nuclear program.
Brent Vustt futures settled at $ 64.76 a barrel, an increase of $ 1.43, or 2.26 %. The US West Texas is over $ 61.50 a barrel, an increase of $ 1.43 or 2.38 %.
“The application of strict restrictions on Iranian crude exports would reduce the global offer,” said Andrew Leibo, President of Lipow Oil Associats. “I think China will continue to buy oil from Iran.”
Wright’s comments provided an escalating oil price momentum, following the volatile price fluctuations this week, forcing the new tariff system for President Donald Trump traders to reassess the geopolitical risks facing the raw market.
“The United States is a new geopolitical risk for the market,” said John Kdov, partner with Capital again. “We will rearrange the chess panel as we did after Russia has invaded Ukraine.”
China announced on Friday that it will impose a 125 % tariff on American goods that start on Saturday, an increase of 84 %, after Trump raised against China to 145 % on Thursday.
Trump this week has stopped a major tariff against dozens of other trade partners, but the prolonged conflict between the two largest economies in the world is likely to reduce global trade sizes and trading methods, which weighs to global economic growth and reduce oil demand.
“Although the implementation of some customs tariffs, with the exception of those in China, is delayed 90 days, the market damage has already been caused, which left the prices struggling to restore stability,” said Oli Hansen, head of the commodity strategy at Saksu Bank.
On Thursday, the US Energy Information Administration reduced the forecasts of global economic growth and warned that the customs tariff could significantly weigh on oil prices. The demand expectations have been reduced in the United States and the global this year and the next year.
China’s 2025 economic growth is expected to decrease last year, as a Reuters poll showed, as American definitions raise pressure on the world’s oil importer.
The director of the United Nations Trade Agency said that the impact of the definitions “could be” catastrophic “for developing countries.
Daniel Heinz, a strategic expert in basic commodities, said that the Anz Bank expects that oil consumption will decrease by 1 % if global economic growth decreases to less than 3 %.
