At 10:16 GMT, Light Crude Oil Futures are trading $62.74, up $0.90 or +1.46%.
Trump Tariff Ruling Eases Demand Concerns—Temporarily
The rally gained added fuel after a U.S. trade court blocked most of former President Donald Trump’s tariffs, lifting risk appetite across equity and commodity markets. The court found Trump overreached by imposing sweeping duties, which had dampened global trade and oil demand.
Analysts warn the decision could face appeal, but for now, the move has removed a short-term demand headwind. SEB’s Bjarne Schieldrop said the ruling makes the “machine of the global economy move better and faster,” potentially supporting oil demand.
OPEC+ Eyes July Output Boost as Supply Risks Mount
Attention now shifts to the upcoming OPEC+ meeting, where the group may decide to accelerate supply hikes. ING analysts anticipate a fresh increase of 411,000 barrels per day in July, with similar output growth expected through the third quarter.
However, additional supply-side pressure is building elsewhere. Chevron halted production in Venezuela after its U.S. license was revoked, curtailing 290,000 barrels per day—over a third of Venezuela’s total exports. Meanwhile, wildfire-driven disruptions in Alberta have temporarily shut in production, adding more upside risk to the supply picture.
Russian Crude Sanctions in Focus as U.S. Considers New Measures
Traders are also monitoring the potential for new U.S. sanctions targeting Russian oil, which could further tighten global supply. The geopolitical environment remains fragile, with any escalation risking a spike in prices. At the same time, the market awaits fresh U.S. inventory data.
