Brent Wraps Up Near $65 Amidst U.S Tariffs Pause
Brent price settled at $64.76 per barrel in the global commodity market, after falling to its lowest of $58 in the week, amidst uncertainties facing markets and countries on the future of global trade and potential crude oil glut.
Crude oil rebounded after the U.S. President, Donald Trump, announced a 90-day tariff pause that excludes the Chinese government. At the same time, the Organisation of Petroleum Exporting Countries and allies members (OPEC+) will increase supply from May with the potential to create a glut in an already tight market.
Similarly, the American benchmark West Texas Intermediate (WTI) was trading at $61.50 per barrel. Oil prices continued to slide on April 9 amid the ongoing tariff battle and expectations that OPEC+ would proceed with its planned production increase.
Brent crude reached $58.22 per barrel, marking its lowest level since February 2021. However, a sharp rebound occurred later that day after Trump confirmed that while tariffs on Chinese goods would rise to 125%, those on other trade partners would remain frozen for 90 days. Brent crude closed the session up 6.7% at $65.47 per barrel.
The White House later clarified that the tariff hike would bring total duties on China to 145% when including the tariffs imposed due to the fentanyl crisis. In retaliation, China imposed its own 84% tariffs, effective Thursday.
Analysts noted that escalating trade tensions between Washington and Beijing were overshadowing optimism over trade negotiations and positive economic data from the US. In addition to the ongoing trade tensions, the US Energy Information Administration (EIA) has further dampened sentiment, projecting a rise in global oil inventories, which is adding pressure to prices.
According to the EIA’s latest Short-Term Energy Outlook (STEO) released late Thursday, global oil inventories are expected to increase by an average of 600,000 barrels per day (bpd) in the second quarter of 2025, with a further rise of 700,000 bpd in the second half of the year.
This upward trajectory in inventories is forecasted to continue into 2026, signaling weaker demand and exacerbating downward pressure on oil prices. Despite these bearish outlooks, Trump’s remarks expressing a willingness to strike a deal with China provided a glimmer of hope for the market.
His comments have raised optimism that a resolution could ease demand concerns, potentially limiting further declines in oil prices. #Brent Wraps Up Near $65 Amidst U.S Tariffs Pause #First Holdco Falls below N1 Trillion in Equities Market
