Brent holds steady as Washington pauses some tariffs

The front-month ICE Brent contract has inched $0.02/bbl up on the day, to trade at $63.43/bbl at 09.00 GMT.

IMAGE: Blue oil barrels. Getty Images

Upward pressure:

Brent’s price felt some upward pressure after US President Donald Trump signed an executive, implementing a 90-day pause on country-specific tariffs for most trade partners.

This development has eased some demand-related fears, with global markets now focused on how trade talks between Washington and its allies will unfold.

“President Trump surprised markets with a 90-day pause in reciprocal tariffs for most trading partners,” two analysts from ING Bank said. “This provided a boost to risk assets, including commodities,” they added.

Downward pressure:

The simmering trade tensions between two leading oil consumers of the world – the US and China – have dragged Brent’s price lower this week.

The US-China tariff battle intensified this week, after Beijing announced 125% tariff on US goods, effective from Saturday, according to a Reuters report. China's latest tariff announcement follows Trump's decision to hike duties on Chinese products to 145%, the report said.

“A prolonged trade war would drag on consumer confidence, weaken appetite for risk and weigh on demand [for commodities like oil],” ING Bank’s analysts added.

By Aparupa Mazumder

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