Oil holds near yearly low with US tariffs and supplies in focus

Oil steadied near the lowest close this year, with tariff threats from US President Donald Trump and a range of supply issues in focus.West Texas Intermediate traded below $69 a barrel after losing almost 3% over the prior two sessions, with Brent settling above $72. Trump said planned tariffs against Mexico and Canada were “not stopping,” but the timing wasn’t clear. Levies against the European Union were also on the cards, he said.

Crude is on pace for its biggest monthly loss since September as the brewing trade wars between the US and its trading partners cloud the economic outlook. That anxiety has eclipsed the possible lifts from tighter sanctions against Iran — a scenario Trafigura Group flagged as the biggest upside risk — and the likelihood OPEC+ will again delay the restoration of shuttered production.
Also on the supply front, President Trump said he planned to revoke Chevron Corp.’s oil license to operate in Venezuela, threatening the nation’s economic recovery. In the Middle East, meanwhile, Iraq said that it had reached a pact with Kurdistan to resume crude exports, without providing a time frame.

Also Read: Asian equities in tight range after Nvidia underwhelms