Oil prices rise on supply concerns; trade war fears cap gains

Oil drilling rigs

Oil prices rose on Tuesday following threats from US President Donald Trump to impose secondary tariffs on Russian crude and attack Iran. However, concerns about the impact of a trade war on global economic growth capped the gains.

At 6:45 GMT, Brent crude futures were up 0.3%, or 21 cents, to $74.98 per barrel.
West Texas Intermediate (WTI) crude futures also climbed 0.3%, or 22 cents, to $71.70 per barrel.

Both benchmarks had settled at their highest levels in five weeks on Monday.

“Near-term risks are skewed to the upside, with US threats of secondary tariffs on Russian and Iranian oil leading market participants to price for the risks of tighter oil supplies,” said Yeap Jun Rong, market strategist at IG.

However, broader themes still revolve around concerns of upcoming tariffs weighing on global demand, along with prospects of increased supply from OPEC+ and the US, said Yeap.

A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from US tariffs and economic slowdowns in India and China, while OPEC+ increases supply.