Crude Oil Begins April Boiling Hot
The global crude oil market saw high buying pressure following a surge of over a month to a high. President Trump’s threat of bombing Iran made geopolitical relations even more complicated and drew a larger risk premium for crude.
Trump also increased sanctions on Moscow, elevating uncertainty over the Russia- Ukraine peace deal.
Concerns over poured oil overseas and global economic consumption also stem from a larger question amidst cooling demand, especially after Trump implied more trade tariffs are to come.
Brent crude contract, which expires in June, stood vacantly at $75 a barrel, West Texas Intermediate oscillated at the $71 a barrel spectrum.
There is an anticipated inflow of supply disruptions along with the surge in oil prices over the past week due to political tensions in the Middle East.
Russia and Ukraine also remain at the forefront. An increasing supply of oil to the market could see a fall after Israel unleashed strikes in the city of Beirut on Tuesday, just a few weeks after a ceasefire with Hamas was defeated.
Trump further escalated the oil drama by threatening to blast Iran if they did not enter into a nuclear agreement, which has drawn a multitude of threats and harsh responses from Iran.
Traders told Reuters they saw Trump’s warnings to Russia, at least, as a bluff after the news of his threats initially caused prices to rise on Monday.
NBC News reported on Sunday that Trump was furious with Russian President Vladimir Putin and threatened to impose secondary tariffs of 25 to 50 percent on Russian oil buyers if Moscow attempted to thwart efforts to put an end to the conflict in Ukraine.
Moscow’s largest clients, China and India, would suffer if buyers of oil from Russia, the second-largest oil exporter in the world, were subject to tariffs. Trump also threatened to impose similar tariffs and bomb Iran if Tehran and the White House could not agree to Tehran’s nuclear program.
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