London — Crude oil futures staged a recovery following a U.S. trade court’s decision to block President Donald Trump’s tariffs, alleviating some concerns over the potential economic fallout from escalating trade disputes.
The ruling, which found the president had exceeded his authority in imposing broad import duties, offered a temporary boost to the oil prices. However, the administration’s appeal could temper the upward momentum.
Geopolitical tensions remain a supporting factor for oil prices. The prospect of fresh U.S. sanctions on Russian crude supplies has intensified concerns about tightening global availability.
Reduced exports from Venezuela could also add to the supply constraints, in addition to the disruptions caused by wildfires in Canada. However, the expected output increase from OPEC+ could continue to weigh on the market.
The market also reacted to a stronger-than-expected drawdown in US crude inventories. The latter alleviated concerns about demand levels in the US.
API crude stocks declined by more than 4 million barrels last week, while expectations pointed to a 1 million barrels increase. Traders could turn to the EIA’s inventory data later today as a surprise could fuel volatility in crude prices.
*Terence Hove Financial Markets Strategist Consultant to Exness
