WTI oil prices are flat in early Tuesday trading, holding above the $71 level after gaining nearly three per cent in the previous session. The recent rise in crude prices was driven by traders pricing in a higher risk of future supply disruptions following Trump's threat to impose secondary tariffs on buyers of Russian and Iranian oil. However, yesterday's rally appears to have lost momentum. For now, supply disruptions remain purely theoretical, and until the tariffs are enforced, countries like China and India are expected to continue purchasing oil from Russia and Iran. Additionally, traders are bracing for the upcoming Liberation Day, when the US is set to impose a wave of tariffs on its trading partners— a move widely seen as a threat to global economic growth and one that could weigh on future oil demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
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Source: ActivTrader
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