Oil Steady as Investors Weigh Impact of Trump Tariffs

An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)
An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)
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Oil Steady as Investors Weigh Impact of Trump Tariffs

An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)
An Oil refinery is seen from Maracaibo, Zulia State, Venezuela on March 19, 2025. (AFP)

Oil prices were little changed on Tuesday as markets weighed the impact of newly announced US tariffs on countries that buy Venezuelan oil and the uncertain outlook for global demand.
Brent crude futures were up 1 cent at $73.01 a barrel by 0424 GMT. US West Texas Intermediate crude dipped 1 cent to $69.10, Reuters said.
Both benchmarks gained more than 1% on Monday after US President Donald Trump announced a 25% tariff on countries importing oil and gas from Venezuela. Oil is Venezuela's main export and China, which is already the subject of US tariffs, is its largest buyer.
"Investors fear Trump's various tariffs could slow the economy and curb oil demand, but the prospect of tighter US sanctions on Venezuelan and Iranian oil constraining supply, along with his swift policy shifts, make it difficult to take large positions," said Tsuyoshi Ueno, senior economist at NLI Research Institute.
"We expect WTI to stay around $70 for the rest of the year, with potential seasonal gains as the US and other countries enter the driving season," he added.
Last week, the US issued new sanctions intended to hit Iranian oil exports.
However, crude eased back from its session highs after the Trump administration also on Monday extended a deadline to May 27 for US producer Chevron to wind down operations in Venezuela.
The withdrawal of Chevron's license to operate could reduce production in the country by about 200,000 barrels per day, ANZ analysts wrote in a note.
Oil prices were also pressured by economic concerns amid mounting global trade tensions.
Trump also said automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.
Meanwhile, OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, will likely stick to its plan to raise oil output for a second consecutive month in May, four sources told Reuters, amid steady oil prices and plans to force some members to reduce pumping to compensate for past overproduction.
Investors were also monitoring talks to end the war in Ukraine, which could increase supply of Russian crude to global markets.
US and Russian officials wrapped up day-long talks on Monday focused on a narrow proposal for a ceasefire at sea between Kyiv and Moscow, part of a diplomatic effort that Washington hopes will help pave the way for broader peace negotiations.



US Treasury Chief Dismisses Moody’s Downgrade amid Trump Tax Cut Debate

US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)
US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)
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US Treasury Chief Dismisses Moody’s Downgrade amid Trump Tax Cut Debate

US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)
US Treasury Secretary Scott Bessent speaks during a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. (AFP)

Treasury Secretary Scott Bessent on Sunday dismissed Moody's downgrade of the US sovereign credit rating, as the Republican-controlled Congress tried to push ahead on President Donald Trump's sweeping tax-cut bill.

Bessent, in a pair of television interviews, said the bill's provisions extending the 2017 tax cuts passed under Trump's first term would spur economic growth that would outpace what the nation owed, even as nonpartisan analysts warn the measure it would add trillions to the federal government's $36.2 trillion in debt.

"I don't put much credence in the Moody's" downgrade, Bessent told CNN's "State of the Union" program.

The House of Representatives Budget Committee on Friday rejected the bill, with a handful of Republican hardliners saying they were concerned it did not sufficiently cut spending.

House Speaker Mike Johnson separately said on Sunday the chamber is still "on track" to pass the bill. The committee is set to try again in a rare Sunday night hearing, set to begin at 10 p.m. ET (0200 GMT Monday).

"We've had lots of conversations. We'll have more today," Johnson said on "Fox News with Shannon Bream" when asked about hard-line Republicans Chip Roy and Ralph Norman demanding more spending cuts.

Congressional Republicans in 2017 also argued that the tax cuts would pay for themselves by stimulating economic growth. But the nonpartisan Congressional Budget Office estimates the changes increased the federal deficit by just under $1.9 trillion over a decade, even when including positive economic effects.