SINGAPORE: According to Reuters, oil prices increased somewhat on Tuesday due to additional tariff exemptions proposed by US President Donald Trump and a resurgence in crude oil imports from China in expectation of a more limited supply from Iran. By 9:30 a.m. Saudi time, Brent crude futures had increased 25 cents, or 0.4 percent, to $65.13 per barrel, while US West Texas Intermediate crude had increased 28 cents, or 0.5 percent, to reach $61.81.
According to independent market analyst Tina Teng, “Trump signaled an auto tariff relief and granted exemptions on electronic tariffs, both of which are seen as setbacks from the previously announced import levies, thus providing some relief to risk assets, including oil.” “But because his policy is unpredictable, the surge in stocks and growth-sentiment commodities is skewed.”
Trump said he was thinking of changing the 25% tariffs placed on imports of foreign cars and auto components from Canada, Mexico, and other countries. This was the most recent step in his raging trade war. For the first time since December, OPEC lowered its demand outlook on Monday due to the uncertainty caused by the US’s erratic trade policies.
On Friday, the Trump administration said that it would exempt computers, cellphones, and a few other electronic products—the majority of which are imported from China—from taxes. Because of this, both oil benchmarks settled marginally higher on Monday.
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