Brent gains after US court overturns Trump tariffs

The front-month ICE Brent contract has moved $1.44/bbl higher on the day, to trade at $65.64/bbl at 09.00 GMT.

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Upward pressure:

Brent crude’s price has gained over $1/bbl in the past session, after the US Court of International Trade blocked President Donald Trump’s “Liberation Day” tariffs, according to media reports.

“Oil prices are firmer this morning after a US court blocked President Trump’s 'Liberation Day' tariffs,” two analysts from ING Bank noted.

Market participants are also looking out for potential new US sanctions on Russian and Iranian crude exports.

Earlier this week, President Trump said that his Russian counterpart, Vladimir Putin, was “playing with fire,” after Moscow intensified airstrikes on Ukrainian cities. Meanwhile, a nuclear agreement between Washington and Tehran seems to be increasingly off the table after the fifth round of talks between delegates from both countries failed to yield any progress.

“Oil markets strengthened yesterday as sanction risks against Russia increase, while the market appears to be losing hope that we’ll see a nuclear deal between the US and Iran,” the ING Bank analysts said.

Downward pressure:

This week’s biggest news will be the upcoming OPEC+ meeting where the group will discuss production quotas for July.

A group of eight OPEC+ members are currently unwinding 2.2 million b/d of output cuts.

“We're assuming the group will agree on another large supply increase of 411k b/d,” ING Bank analysts said.

The Saudi Arabia-led coalition is set to hold an online meeting on Saturday, a day earlier than previously scheduled.

“We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,” the analysts added.

By Aparupa Mazumder

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