Oil prices increased by around $1 a barrel on Thursday, May 29, 2025, after a United States court blocked most of President Donald Trump’s tariffs.
The market was also 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 $1.12, or 1.7%, to $66.02 a barrel, while U.S. West Texas Intermediate crude advanced by $1.14, or 1.8%, to $62.98 a barrel at 0800 GMT.
A U.S. trade court on Wednesday, May 28, 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 aluminium using a different statute.
A chief commodities analyst at SEB, Bjarne Schieldrop, said: “Markets are positive since Donald Trump got the setbacks on the tariffs.
“That’s less headwind for the global economy, so more demand for oil because the machine of the global economy moves better and faster.”
Elon Musk resigns from Trump’s administration
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.
On the oil supply front, there are concerns about potential new sanctions on Russian crude, Reuters reported.
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risks, Chevron has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by the Trump administration in March.
The Star
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