Oil prices rose on new proposals by US President Donald Trump to exempt from tariffs, as well as the resumption of crude oil imports by China amid an expected reduction in supplies from Iran.
Ekonomichna Pravda reported this with reference to Reuters.
The report said that Brent crude futures rose by 12 cents, or 0.2%, to USD 65 a barrel, while US West Texas Intermediate rose by 13 cents, or 0.2%, to USD 61.66.
“Trump allowed exemptions from tariffs on electronics and signaled a possible easing of tariffs on cars, which is seen as a departure from previously announced import duties, and therefore somewhat relieved the pressure on risk assets, including oil,” said independent market analyst Tina Teng.
“However, the rise in stock markets and commodities linked to growth sentiment has raised skepticism because his policies are unpredictable.”
In another twist in the trade war, Trump said he was considering reversing the 25% tariffs imposed on imported cars and auto parts from Mexico, Canada and other countries.
U.S. trade policy uncertainty has added to uncertainty in global oil markets, and OPEC on Monday cut its demand forecast for the first time since December.
The Trump administration announced on Friday that it would exempt smartphones, computers and some other electronic goods, most of which are imported from China, from tariffs.
That helped push oil prices up slightly on Monday.
On Sunday, Trump said he would announce tariffs on semiconductor imports within a week, and the administration began an investigation into semiconductor imports on April 1, according to a Federal Register filing on Monday.
“The market is reacting to the rapid changes in tariff policy while also keeping an eye on the nuclear talks between the U.S. and Iran,” ING said in a note on Tuesday.
“It is clear that the market’s attention is more focused on the tariffs and how they will affect oil demand.”
U.S. Energy Secretary Chris Wright said on Friday that the United States could completely halt Iranian oil exports as part of Trump’s plan to pressure Tehran over its nuclear program.
Prices were also supported by data on Monday showing that China's crude oil imports rose nearly 5% in March from a year earlier, as Iranian oil shipments surged in anticipation of tougher U.S. sanctions.
As the Ukrainian News agency earlier reported, oil prices continue to fall amid an escalating conflict between the world's two largest economies.
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