
Oil crept higher as traders braced for impending US tariff announcements and equity markets rose.
West Texas Intermediate rose 0.7% to settle below $72 a barrel, while global benchmark Brent ended the session just below $75. US President Donald Trump is set to announce tariffs later Wednesday and the sweeping duties are set to take immediate effect.
Several proposals are said to be under consideration, including a tiered system with a set of flat rates for different countries, as well as a more customized “reciprocal” plan. Equity markets also gained.
The tariffs add to a deluge of conflicting drivers since Trump came into office. Sanctions threaten to curb supplies from Russia and Iran, while a production boost by OPEC and its allies starting this month is exacerbating concerns that a glut is looming.
The US is threatening to further tighten the screws on Russia. A group of 50 Republican and Democratic senators introduced a sanctions package that would hit the third-largest oil producer and countries that buy its fuel if President Vladimir Putin refuses to engage in good-faith ceasefire negotiations with Ukraine or if he breaches any eventual agreement.
“Supply risks are still top of mind,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “But with equities rallying on the prospect of a less-than-horrible tariff outcome, crude is along for the ride.”
Oil Prices:
- WTI for May delivery rose 0.7% to settle at $71.71 a barrel in New York.
- Brent for June settlement climbed 0.6% to settle at $74.95 a barrel.
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