March 07, 2025 04:04 GMT
OIL: Oil Prices Steady - On Track for Biggest Weekly Decline for Year.
OIL
- The push pull of tariff headlines was evident in oil markets today as some economists suggest that full blown tariffs could drive economic growth down, weighing heavy on oil demand.
- As always with markets a counter view is that tariffs on Mexican and Canadian oil (whose infrastructure is dominated by US demand) could actually increase oil demand as the US demand seeks supply from elsewhere.
- WTI opened at $66.34 trading down initially before recovering back to $66.39.
- WTI is down -4.8% this week and on track to record its biggest fall for the year.
- Brent opened at g$69.43 falling initially before stabilizing at $69.53 on low volumes.
- Brent is currently down -4.9% for the week, on track for its biggest decline for the year.
- President Trump has now indicated tariffs will be deferred on Canada and Mexico for all goods covered under the trade agreement known as USMCA which includes energy.
- Data out shows US refiners have reduced their orders for Mexican oil by 30% for March.
- Canadian fuel tankers usually bound for the US are being diverted to Europe as the flow of energy in North American is disrupted by tariffs.
- Treasury Secretary Bessent said Thursday that the US “will not hesitate to go all in on Russian energy if it helps lead to a ceasefire in Ukraine.”
- In a report to the National People’s Congress China’s economic planners are advocating a reduction in the refinement of oil and a re-focus on chemicals .
- Brazil’s Raizen SA is exploring the sale of its Argentinian oil assets as yet another multi-national leaves the country.
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