Crude Oil Market Grows Amid Tariffs, Oversupply Pressures

Brent crude futures grew by 32 cents to settle at $66.87 a barrel, and the US West Texas Intermediate (WTI) crude futures gained 23 cents to sell for $63.02 a barrel.

China exempted some U.S. imports from its steep tariffs, a sign on Friday that the trade war between the world’s top two economies could be easing.

However, China quickly knocked down US President Donald Trump’s assertion that negotiations were underway.

It was reported that China has allowed some US-made pharmaceuticals to enter the country without paying the 125 per cent duties that was imposed earlier this month in response to President Trump’s 145 per cent tariffs on Chinese imports.

Reuters reported that a list of 131 product categories said to be under consideration for exemptions was circulating among some businesses and trade groups. However, China has not yet communicated publicly on the issue.

This comes as President Trump’s administration has also in recent days signaled it is looking to defuse the tension with China.

Trump’s tariffs dominated discussions at the International Monetary Fund (IMF) meetings this week, where finance ministers angled for one-on-one meetings with the U.S. treasury secretary.

As the market fears about the demand side of things, there are indications that supply might rise.

Several members of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) have suggested the group accelerate oil output increases for a second month in June.

Earlier this month, OPEC+ decided to increase output by 411,000 barrels per day of oil in May, which was three times more than the group originally planned.

Eight OPEC+ countries will meet on May 5 to decide the June output plan.

Possible ease in the war in Ukraine also has the potential to add to supplies if it allows more Russian oil to reach global markets.

There was a three-hour meeting on Friday between Russian President Vladimir Putin and President Trump’s envoy Steve Witkoff. It was reported that the meeting was constructive and narrowed differences when it came to ending the war in Ukraine.