Oil Prices Steady Amid Trade War and Iran Tensions

Oil prices remained steady following a recent decline, as concerns about a potential trade war between the United States and China conflicted with increasing economic pressure on Iran.

Current Oil Prices

As of now, West Texas Intermediate (WTI) is trading below $73 per barrel, while Brent crude has closed above $76. This follows a volatile start to the week marked by announcements of tariffs and subsequent delays on duties concerning Mexico and Canada.

Impact of Trade War

The U.S.-China trade tensions have raised fears about global economic growth, yet they seem unlikely to significantly impact U.S. crude oil exports. Currently, shipments to China account for less than 5% of total U.S. crude exports. This suggests that American markets may find new buyers for their crude oil, mitigating losses.

Economic Measures Against Iran

In parallel, President Donald Trump has intensified economic measures against Iran, asking Treasury Secretary Scott Bessent to implement sanctions and enforce existing regulations more strictly. This move has been perceived as an effort to increase pressure on Tehran amid rising geopolitical tensions.

Market Reactions

Goldman Sachs analysts have commented that the immediate effects on the commodities market will likely be limited. They noted that U.S. crude volumes affected by this trade war would probably be able to find alternative markets while China would turn to other suppliers to meet its import needs.

Market Trends and Oil Inventories

Despite concerns of a potential loss of momentum in earlier oil price gains from cold winter weather and sanctions on Russia, the crude market is also reacting to rising U.S. inventories. The American Petroleum Institute reported that nationwide commercial crude inventories rose by 5 million barrels last week. This increase points to a potential trend of rising stock levels if government confirmations affirm these findings.

Price Overview

As of 8:08 a.m. in Singapore, WTI for March delivery has slipped by 0.2% to $72.57 per barrel, while Brent for April settlement closed 0.3% higher at $76.20 per barrel.

Oil, Trade, Iran