Oil rose after US President Donald Trump suggested that the US may work to curtail crude shipments from Russia, the world’s third-largest producer and a major exporter.
West Texas Intermediate rose almost 2% to top $70 a barrel, the highest in a month, while Brent’s June contract approached $74. On Sunday, NBC News reported that Trump said he was “very angry” at Russian President Vladimir Putin and would consider “secondary tariffs” to limit the country’s oil exports if it refuses a ceasefire with Ukraine. He later told reporters on Air Force One that he didn’t think Putin would “go back on his word,” softening his criticism.
Any concerted attempt to punish Putin could have a far-reaching effect on the broader crude market. India and China, which have become the key buyers since Moscow’s full-scale invasion of Ukraine, would face particular pressure.
“At this stage, the market seems to be weighing whether demand risks or supply risks are the bigger concern,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. “For now, supply fears are taking the lead, but if broader risk assets continue to weaken, crude may eventually succumb to demand worries.”
Limiting crude’s gains, US equities tumbled on Monday as markets braced for the administration’s sweeping trade measures that are set to take effect this week. US stocks are on pace to conclude their worst quarter compared to the rest of the world since the 1980s, encouraging some traders to step back from the market.
Russia’s crude exports hit a five-month high in March, and US sanctions on the nation’s oil tanker fleet are showing signs of faltering. Trump also said he’s considering punishing Tehran with unspecified “secondary tariffs” and raised the threat of bombing Iran until it signs a deal that renounces nuclear weapons.
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This article was generated from an automated news agency feed without modifications to text.
