Brent gains as markets focus on tariff pause

The front-month ICE Brent contract has gained by $0.43/bbl on the day, to trade at $65.25/bbl at 09.00 GMT.

IMAGE: Oil barrels. Getty Images

Upward pressure:

Brent’s price moved higher as global investors found some relief after the US administration temporarily paused some tariffs for 90 days.

While there are no significant upward pressures on Brent’s price at the moment, easing tariff-related concerns have helped prevent a further decline.

Market participants are now waiting to see the outcomes of trade negotiations between the US and its trading partners during the 90-day pause period.

Downward pressure:

Brent’s price felt some downward pressure after the American Petroleum Institute (API) reported a surge in US crude stocks. US crude oil inventories gained by 2.4 million bbls in the week ending 11 April, according to API estimates.

A buildup in inventories typically signals weaker oil demand, which can put downward pressure on Brent's price. “The demand picture for oil looks anything but rosy,” SPI Asset Management managing partner Stephen Innes remarked.

Additionally, the Paris-based International Energy Agency (IEA) now sees global oil demand to grow by 730,000 b/d in 2025, about 300,000 b/d lower than its previous estimate. This news has also capped Brent’s price gains.

“Traders are looking past the surface print and zeroing in on the soft underbelly: bloated inventories, sluggish demand recovery, and a tariff war that’s morphing into a slow bleed for global trade flows,” Innes added.

By Aparupa Mazumder

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