Middle East crude benchmark spot premiums for Oman and Dubai slid on Monday, while that for Murban ticked up.
Trading was light given China is on the Lunar New Year holiday, and the market also awaits the outcome of the OPEC+ meeting on Monday.
Oil prices jumped on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of crude supply disruption from the two biggest suppliers to the U.S., but the prospect of lower fuel demand capped gains.
Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, kicking off a trade war that could dent global growth and reignite inflation.
Energy products from Canada will have only a 10% duty, but Mexican energy imports will be charged the full 25%, White House officials said.
SINGAPORE CASH DEALS
Cash Dubai’s premium to swaps fell 33 cents to $3.92 a barrel.
NEWS
The new tariffs U.S. President Donald Trump imposed on imports from Canada, Mexico, and China are likely to have a limited near-term impact on global oil and gas prices, Goldman Sachs said in a note on Sunday.
OPEC+ is unlikely to alter existing plans to raise output gradually when it meets on Monday, delegates from the producer group told Reuters, despite U.S. President Donald Trump urging OPEC and its de facto leader Saudi Arabia to bring down prices.
Ukraine struck energy facilities in southern Russia with dozens of drones on Monday, triggering fires at a major oil refinery and gas processing plant and disrupting flights from the Volga to the Caucasus Mountains, Russian and Ukrainian officials said.
Global oil demand is expected to remain steady until at least 2040, according to a forecast by energy and commodities trader Vitol, the Financial Times reported on Sunday.
Source: Reuters