Oil held the bulk of the largest daily gain in more than six weeks as investors assessed the fallout from US President Donald Trump’s escalation of tariff threats against the country’s major trading partners.West Texas Intermediate traded near $70 a barrel after surging more than 2% on Thursday, with Brent closing just above $74. Trump affirmed plans for levies on imports from Canada and Mexico from March 4, including a possible 10% levy on Canadian energy products. This could raise crude costs, although higher charges on all other goods risk slowing growth and hurting oil demand.
Crude remains on track for a monthly loss as poor economic data fanned concerns over global growth. Trump has also jacked up tariffs against China, the world’s largest crude importer. On the supply side, pipeline exports from Iraq’s semi-autonomous Kurdistan region may be restarted, although OPEC+ is widely seen as likely to defer a production increase.
On Ukraine, Trump said that negotiations on a deal regarding the war were “very well advanced” although nothing conclusive was yet reached. He said the US would be a major partner in developing Ukraine’s commodities extraction including oil and gas, as well as minerals and rare earths.
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