Oil prices climb after U.S. court blocks most of Trump's tariffs
Oil prices rose on Thursday after a U.S. court blocked most of President Donald Trump's tariffs, 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 27 cents, or 0.4%, to $65.17 a barrel. U.S. West Texas Intermediate crude advanced by 26 cents, or 0.4%, to $62.10 a barrel at 6:45 a.m. ET.
A U.S. trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum using a different statute.
'Markets are positive since Donald Trump got the setbacks on the tariffs,' said Bjarne Schieldrop, chief commodities analyst at SEB. 'That's less headwind for the global economy, so more demand for oil because the machine of the global economy moves better and faster.'
The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but some analysts said the relief may only be temporary given the Trump administration has said it will appeal.
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'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 oil 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 oil production hikes in July.
'We're assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,' said ING analysts in a note.
Adding to supply risks, Chevron Corp. CVX-N has terminated its oil production and a number of other activities in Venezuela, after its key licence was revoked by the Trump administration in March.
Venezuela in April cancelled cargoes scheduled to Chevron, citing payment uncertainties related to U.S. sanctions. Chevron was exporting 290,000 barrels a day 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 600,000 to 700,000 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.
According to the market sources familiar with the API data, U.S. crude and gasoline stocks fell last week while distillate inventories rose.
Meanwhile, a wildfire in Alberta has forced residents of a small town to evacuate and prompted the temporary shutdown of some oil and gas production which could reduce supply.
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Globe and Mail
an hour ago
- Globe and Mail
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May was a month to remember for Wall Street's most-famous billionaire money manager, Warren Buffett. On May 3, the company Buffett has been CEO of for six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), reported its first-quarter operating results, and the Oracle of Omaha announced during his company's annual shareholder meeting that he'd be stepping down as CEO at the end of the year. But this wasn't all. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Institutional investors with at least $100 million in assets under management were required to file Form 13F with the Securities and Exchange Commission by no later than May 15. Even though Berkshire's first-quarter operating results made clear that Buffett was a net seller of stocks for a 10th consecutive quarter, the company's cash flow statement didn't spill the beans on which stocks he was buying and selling. A 13F opens the proverbial hood for investors to see which stocks Wall Street's preeminent billionaire investor bought and sold in the first quarter. Based on Berkshire Hathaway's 13F for the March-ended quarter and various regulatory filings, we know that Buffett purchased 13 stocks, including a mystery company. On the flipside, Berkshire's chief oversaw the removal or reduction of eight stocks. What really stands out is Buffett's persistent selling of one of his (current) core holdings, and his continued purchasing of a beloved consumer brand that's skyrocketed since it became a public company 21 years ago. Bank of America stock gets the axe for the third consecutive quarter No sector tends to be favored more by the Oracle of Omaha than financials. Even though banks and insurance companies are relatively boring businesses that ebb-and-flow with the health of the U.S. economy, it's a sector that intrigues Berkshire's chief and for which he has a good understanding. For years, money-center giant Bank of America (NYSE: BAC) was Berkshire Hathaway's largest financial stock and No. 2 holding by market value, behind only Apple. But beginning on July 17, 2024 -- we know this specific date, because Berkshire Hathaway held in excess of 10% of BofA's outstanding shares, and was thus required to file Form 4 detailing all shares purchased and sold until its ownership dipped below 10% -- the selling spigot opened. For three consecutive quarters, Buffet has sold shares of Bank of America. What was once a position of more than 1.03 billion shares has been reduced by more than 401 million shares, or 39%. As of this writing on May 28, Bank of America has fallen to No. 4 in Berkshire's $276 billion portfolio, behind Apple, American Express, and Coca-Cola, in terms of market value. This persistent selling of Bank of America stock may very well be nothing more than benign profit-taking. 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Globe and Mail
an hour ago
- Globe and Mail
Billionaire Bill Ackman Wants to Be the Next Warren Buffett, and He Is Buying an AI Stock Up 855% in 10 Years (Hint: Not Nvidia)
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Winnipeg Free Press
4 hours ago
- Winnipeg Free Press
China blasts US for its computer chip moves and for threatening student visas
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