Oil prices rose amid persistent concerns about Trump's tariffs
Kyiv • UNN
Brent crude futures rose 0.5%, WTI - 0.7%. Investors are closing short positions, fearing a recession due to tariffs and US monetary policy.
Oil prices rose on Tuesday, as investors took advantage of the previous day's losses to close short positions, although concerns remained about economic obstacles due to US tariffs and monetary policy, which could reduce fuel demand, Reuters reports, UNN writes.
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Brent crude futures rose 36 cents, or 0.5%, to $66.62 a barrel at 04:21 GMT (07:21 Kyiv time).
The June contract for WTI crude, which is actively traded, rose 0.7%, or 43 cents, to $62.84 a barrel.
Both benchmarks fell in price by more than 2% on Monday, as signs of progress in negotiations on a nuclear deal between the United States and Iran helped ease concerns about supply.
"Some short positions began to close after a sharp sell-off on Monday," said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a division of Nissan Securities.
"However, concerns about a potential recession caused by the tariff war remain," he said, predicting that WTI is likely to trade in the $55-$65 range for now, given the uncertainty that persists related to tariffs.
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On Monday, US President Donald Trump reiterated his criticism of the head of the country's Federal Reserve System, Jerome Powell, and said that the US economy could slow down if interest rates are not immediately lowered.
His comments about Powell fueled concerns about the independence of the Federal Reserve in determining monetary policy and the prospects for US assets.
"The growing uncertainty surrounding US monetary policy is expected to negatively affect financial markets and the economy as a whole, raising concerns that this could lead to a decrease in demand for crude oil," Kikukawa said.
A Reuters poll from April 17 showed that investors believe that tariff policy will cause a significant slowdown in the US economy this and next year, and the median probability of a recession over the next 12 months is approaching 50%.
The United States is the world's largest oil consumer.
Progress in negotiations between the United States and Iran, which on Saturday agreed to begin developing a framework for a potential nuclear deal, may also put pressure on oil prices and reduce concerns about supply, as this Middle Eastern country is a major producer.
"Our view that Iran's oil exports face imminent downside risks due to the imposition of US sanctions has softened, given the ongoing negotiations between the US and Iran," Commonwealth Bank of Australia analyst Vivek Dhar said in a note, adding that easing US sanctions is potential.
Meanwhile, according to documents obtained by Reuters, the Russian Ministry of Economy has lowered its forecast for the average price of Brent crude oil in 2025 by almost 17% compared to what was seen in September calculations.
Russia expects lower exports and oil prices this year - Bloomberg21.04.25, 14:03 • 3488 views