Oil Market Update – Baghdad
Oil prices experienced stability on Wednesday, rebounding from recent lows, following confirmation from the White House regarding US President Donald Trump’s intention to impose tariffs on Canadian and Mexican imports this week.
Concerns regarding weak demand driven by disappointing economic data from China and elevated temperatures in various regions contributed to moderating gains in the market.
Brent crude futures decreased by 2 cents, trading at $77.49 per barrel. Conversely, US West Texas Intermediate (WTI) crude futures increased by 3 cents to settle at $73.80.
In a broadcasted address from Washington, President Trump called for reductions in oil prices as well as lower global interest rates.
The White House has reiterated that Trump remains committed to applying a 25% tariff on imports from Canada and Mexico starting Saturday, while considering additional tariffs on Chinese goods.
In Libya, local protests on Tuesday impeded the loading of crude oil at the ports of Sidra and Ras Lanuf, posing a risk to exports of approximately 450,000 barrels per day. However, tensions eased later as the Libyan National Oil Corporation announced that operations returned to normal following discussions with the demonstrators.
In a significant development for the oil market, China, the world’s largest crude oil importer, reported an unexpected contraction in manufacturing activity in January, which has placed additional pressure on oil prices.
Moreover, recent US sanctions targeting the Russian oil trade are anticipated to further impact Chinese demand for crude oil.
In the United States, forecasts indicate above-average temperatures this week, which may dampen demand for heating fuels, given that prior extreme cold conditions had driven up natural gas and diesel prices.