Oil prices climb as US court blocks Trump tariffs
By Katya Golubkova
TOKYO (Reuters) - Oil prices rose on Thursday after a U.S. court blocked President Donald Trump's tariffs from taking effect, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July.
Brent crude futures climbed 81 cents, or 1.25%, to $65.71 a barrel. U.S. West Texas Intermediate crude advanced by 83 cents, or 1.34%, to $62.62 a barrel at 0102 GMT.
A U.S. trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board tariffs on imports from nations that sell more to the United States than they buy.
The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but analysts said the relief may only be temporary given the administration has said it will appeal.
"But for now, investors get a breather from the economic uncertainty they love to loathe," said Matt Simpson, an analyst at City Index in Brisbane.
On the supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate their oil production hikes in July.
With Russian oil so far overall showing relative resistance to the sanctions, imposed over Moscow's war on Ukraine, "it is hard to be convinced that any new U.S. sanctions on Russia will meaningfully dent Russia's oil exports," Commonwealth Bank of Australia analyst Vivek Dhar said in a note.
Adding to supply risks, Chevron has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by U.S. President Donald Trump's government in March.
Venezuela in April cancelled cargoes scheduled to Chevron citing payment uncertainties related to U.S. sanctions. Chevron was exporting 290,000 barrels per day (bpd) of Venezuelan oil or over a third of the country's total before that.
"From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply," Mukesh Sahdev, Global Head of Commodity Markets at Rystad Energy, said in a note, as he expects demand growth outpacing supply growth by 0.6 million to 0.7 million bpd.
Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute (API) and the Energy Information Administration, the statistical arm of the U.S. Department of Energy.
U.S. crude oil and distillate inventories likely rose last week while gasoline stockpiles likely fell, an extended Reuters poll showed on Wednesday.
According to the market sources familiar with the API data, U.S. crude and gasoline stocks fell last week while distillate inventories rose.
Errore nel recupero dei dati
Effettua l'accesso per consultare il tuo portafoglio
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
Tata Motors to expand EV and vehicle portfolio with $4.1bn investment
Tata Motors has reportedly announced plans to invest up to Rs350bn ($4.1bn) over the next five years. This substantial investment aims to solidify the company's position in India's rapidly evolving electric vehicle (EV) market and expand its current vehicle lineup. The investment will see Tata Motors nearly double its model offerings from eight to fifteen, including the introduction of additional EVs and compressed natural gas (CNG) vehicles, reported Reuters. The company's investor day presentation also highlighted plans to enhance the technology features of their vehicles. India, currently the world's third-largest car market, is setting the stage for stricter emission norms from 2027 and is targeting EVs to account for 30% of all car sales by 2030. Despite not disclosing its investment plan for the year to March 2026, Tata Motors previously indicated that the domestic businesses, including commercial vehicles, would see a capital expenditure of about Rs80bn. Competition in the combustion engine market is intensifying, with rivals such as Mahindra & Mahindra overtaking Tata in sales. Furthermore, MG Motor has been challenging Tata's dominance in the EV sector with its "Windsor" model, which has outsold Tata's offerings since late last year. Nevertheless, Tata Motors is maintaining its ambitious target of a 16% market share by March 2027, with aspirations to reach between 18% and 20% by March 2030. However, the company reported a 6.15% decline in total sales across domestic and international markets, with 72,753 units sold in April 2025 compared to 77,521 units in April 2024. This downturn includes a 7% drop in domestic sales and an 8% decline in commercial vehicle sales. "Tata Motors to expand EV and vehicle portfolio with $4.1bn investment" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
22 minutes ago
- Bloomberg
Macron Seeks Greenland Visit to Counter ‘Predation' After Trump
French President Emmanuel Macron said he plans to visit Greenland on Sunday to help counter any 'predation' after US President Donald Trump said he wants to take over the self-ruling territory of Denmark. France wants to show solidarity with Denmark and say 'we are here' to support the fellow European Union country, Macron said in an interview on France 2 television.
Yahoo
22 minutes ago
- Yahoo
'So bad, it's good': History shows the market's smallest stocks may be poised for a rebound after record underperformance
Small-cap stocks look poised for a rebound this month after tariff-related losses. Historically, June sees strong small-cap performance due to FTSE Russell index rebalancing. Cheap valuations, potential rate cuts, and AI adoption could drive a small-cap resurgence. Small-cap stocks were hammered in the aftermath of President Donald Trump's tariffs, but the stage looks set for a rebound this June. The small-cap track record has been grim recently: the Russell 2000 has seen its worst streak of underperformance relative to the S&P 500 since the dot-com era, and this past May marked the sixth-worst year-to-date performance since 1990. Small caps, initially perceived as a clear winner of the Trump trade following the election, have emerged as the biggest losers of the trade war. With tariff concerns top-of-mind, investors are viewing small caps as "price takers, not price makers," extra vulnerable to inflation and supply chain disruptions, a note by Evercore ISI senior managing direction, Julian Emanuel, said. But for the optimists, once you hit rock bottom, the only direction to go is up. In the eyes of Evercore, small caps have become "so bad, they're good." June has historically been a strong month for small caps, as the FTSE Russell rebalances its indexes and adds or removes stocks based on market cap criteria. This leads to a surge of trading activity that can boost stock prices. This effect is particularly prominent in the wake of outsized underperformance. In the five other instances of disappointing January to May performance, small caps exhibited strong seasonal reversion during the month of June, outperforming large caps by an average of 4.1%, Evercore said. The firm believes the market has moved past the point of peak tariff uncertainty, which could further boost the sector's performance in June. There are other catalysts for a small-cap resurgence as well. Amy Zhang, a portfolio manager at investment management firm Alger, pointed to cheap valuations and the potential for rate cuts. Small caps have historically traded at a 27% premium relative to large caps due to their higher growth expectations, but on a forward-looking basis, the Russell 2000 is currently only trading at a 11% premium to the S&P 500. This allows investors to get exposure to small caps at a steep discount relative to history, especially as fundamentals and the overall economic environment improve. Cheap valuations make small caps appealing takeover targets, and a pickup in M&A activity could help lift the group, Zhang told Business Insider. As large companies look to boost growth through acquisitions, smaller firms become prime candidates. The healthcare sector, the largest component of the Russell 2000, tends to benefit the most from increased dealmaking, according to Bank of America. Both Emanuel and Zhang believe lower rates, which help smaller companies with higher levels of debt on their balance sheets, could be coming later this year. "Because it's data dependent, they run the risk of being too late again," Zhang said of the Fed cutting rates. "I think it could be the case, like last year Q4, where the Fed may be in a position again to pivot to 50 basis points of cuts." Additionally, Zhang sees AI as a long-term tailwind for small caps. "AI is very deflationary, especially for labor costs," Zhang said. That means companies that adopt AI effectively can expand margins and boost productivity — advantages that could be especially powerful for smaller firms with with smaller budgets. Read the original article on Business Insider
