SINGAPORE- Oil prices ticked higher on Monday even as investors weighed US President Donald Trump’s latest tariff threat, this time on all steel and aluminum imports, which could dampen global economic growth and energy demand.
Brent crude futures climbed 40 cents, or 0.5 percent, to $75.06 a barrel while US West Texas Intermediate crude was at $71.38 a barrel, up 38 cents, or 0.5 percent. The market posted its third consecutive weekly decline last week on concerns about a global trade war.
Trump said he will announce on Monday 25 percent tariffs on all steel and aluminum imports into the US in another major escalation of his trade policy overhaul.
Just a week ago, the president announced tariffs on Canada, Mexico and China, but suspended those for its neighboring countries the next day.
In light of Trump’s temporary backdown last week, investors appeared to be shrugging off the steel and aluminum tariff threat for now, Tony Sycamore, a Sydney-based analyst at IG said.
“The market has realized tariff headlines are likely to continue in the weeks and months ahead,” he said, adding that there’s an equal chance they could be walked back or even increased at some point in the near future.
