Oil costs little modified as traders weigh affect of Trump tariffs

By Yuka Obayashi

TOKYO (Reuters) – Oil costs barely moved on Tuesday as traders weighed the affect of U.S. tariffs on international locations shopping for oil and gasoline from Venezuela in opposition to the impact of tariffs on industries reminiscent of vehicles on the worldwide economic system and oil demand.

Brent crude futures have been up 1 cent at $73.01 a barrel by 0121 GMT. U.S. West Texas Intermediate crude rose 1 cent to $69.12.

Each benchmarks gained greater than 1% on Monday after U.S. President Donald Trump introduced a 25% tariff on international locations importing oil and gasoline from Venezuela.

“Traders concern Trump’s varied tariffs might gradual the economic system and curb oil demand, however the prospect of tighter U.S. sanctions on Venezuelan and Iranian oil constraining provide, alongside along with his swift coverage shifts, make it tough to take giant positions,” mentioned Tsuyoshi Ueno, senior economist at NLI Analysis Institute.

“We anticipate WTI to remain round $70 for the remainder of the yr, with potential seasonal features because the U.S. and different international locations enter the driving season,” he added.

Final week, the U.S. issued new sanctions meant to hit Iranian oil exports.

The Trump administration additionally on Monday prolonged a deadline to Might 27 for U.S. producer Chevron to wind down operations in Venezuela.

Trump additionally mentioned car tariffs are coming quickly whilst he indicated that not all of his threatened levies could be imposed on April 2 and a few international locations might get breaks, a transfer Wall Avenue took as an indication of flexibility on a matter that has roiled markets for weeks.

In the meantime, OPEC+, the Group of the Petroleum Exporting Nations and allies together with Russia, will possible persist with its plan to lift oil output for a second consecutive month in Might, 4 sources informed Reuters, amid regular oil costs and plans to power some members to cut back pumping to compensate for previous overproduction.

Traders have been additionally monitoring talks to finish the conflict in Ukraine, which might improve provide of Russian crude to international markets.

U.S. and Russian officers wrapped up day-long talks on Monday centered on a slim proposal for a ceasefire at sea between Kyiv and Moscow, a part of a diplomatic effort that Washington hopes will assist pave the best way for broader peace negotiations.

(Reporting by Yuka Obayashi; Enhancing by Muralikumar Anantharaman)