Oil prices saw a modest increase on Tuesday, driven by several key factors: the US’s new tariff exemptions, global oil production cuts, and ongoing talks between Washington and Tehran.
The price of Brent crude, the international benchmark, rose by approximately 0.57%, reaching $64.92 per barrel at 10:22 AM local time (0722 GMT). This was up from $64.55 at the previous day’s close.
US benchmark West Texas Intermediate (WTI) also gained 0.55%, settling at $61.50 per barrel, compared to its prior closing price of $61.16.
The US’s announcement of tariff exemptions for some technology products, such as smartphones and computers, initially supported oil prices. However, concerns over global demand resurfaced as trade tensions between the US and other countries, including China, led to a quick pullback in the gains.
Despite these concerns, President Donald Trump denied reports that his administration had approved these exemptions. Trump stated on his social media platform, Truth Social, that no one would be “off the hook” for unfair trade practices, particularly China, which he criticized for its handling of trade balances.
Meanwhile, OPEC’s latest oil market report showed a decline in crude oil production by the organization. OPEC’s output fell by 78,000 barrels per day (bpd) in March, reaching 26.776 million bpd. Combined with a reduction in production by non-OPEC producers, part of the OPEC+ group, overall supply dropped by 37,000 bpd to 41.02 million bpd. This drop raised concerns among market participants about supply shortages, driving prices higher.
US-Iran Nuclear Talks Continue
Another key factor influencing oil prices is the ongoing negotiations between the US and Iran, which could have a significant impact on US sanctions on Iranian oil exports.
The next round of talks is set to take place on Saturday in Muscat, Oman. US President Trump has been optimistic about the talks, claiming they are “almost easy” to resolve, despite the long-standing nature of the issue. He expressed frustration that the next meeting with Iran is scheduled for Saturday, accusing Tehran of dragging out the process.
The outcome of these discussions could have important implications for global oil supply and pricing, especially if sanctions on Iranian oil exports are altered or lifted.
Conclusion
As oil prices fluctuate in response to multiple global factors—US trade policy, OPEC’s production cuts, and US-Iran negotiations—the market remains uncertain. Traders are closely monitoring these developments for further signs of price direction in the coming weeks.
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