Oil Climbs as Traders Take Stock of Libyan Risks, Trump Threats
Source: Live Mint
Oil recovered after sinking by almost 2% on Monday, as traders weighed risks to crude supplies from Libya’s major ports against President Trump’s desire for universal trade tariffs.
Brent futures crept toward $78 a barrel. Protesters in Libya have demanded two major ports halt crude loadings, which may affect hundreds of thousands of barrels of exports. Stoppages at the Ras Lanuf and Es Sider hubs in the country’s east start Tuesday, people with direct knowledge of the situation said.
In a series of remarks, Donald Trump said he favored across-the-board tariffs “much bigger” than 2.5% and charges on some foreign-made goods in the “near future,” listing products including steel, aluminum and copper.
Crude markets are in the middle of a bumpy start to the year, as US sanctions on Russian oil and cold weather ratcheted prices higher and sent barrels in the Middle East soaring.
Since then, speculators have piled into the market, bolstering the risks of a pullback like the one seen Monday, which was the biggest since November. That move was also exacerbated by a steep drop in wider markets.
“Stabilization in the stock market and reports of protests at two of Libya’s oil ports, potentially halting the export of several hundred thousand barrels of oil per day, are supporting prices this morning,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management.
In Canada, Alberta’s premier said the country should prepare for tariffs on Feb. 1, a date highlighted by Trump in earlier remarks. than half of US crude imports come from the northern neighbor, mostly from the oil-rich province.
Looking ahead, oil traders expect OPEC and allies to stick with their current supply policy at a review meeting next week, resisting pressure from Trump to boost production and bring down crude prices. At present, the group intends to bring back output in monthly tranches starting from April.
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