West Texas Intermediate (WTI) crude oil prices continue their upward momentum for a third consecutive day, trading around $72.20 during Asian hours on Tuesday. The rise is driven by mounting concerns over supply risks, though gains remain capped by trade tensions and economic uncertainty.
The market remains cautious after U.S. President Donald Trump announced a 25% tariff increase on steel and aluminum imports, raising fears of slower global economic growth and weakened energy demand in the world’s largest oil-consuming nation.
Meanwhile, Russian oil production in January declined further below its OPEC+ quota, with output dropping to 8.962 million barrels per day—16,000 barrels short of its target, according to Bloomberg sources.
Additional pressure on global oil markets comes from new U.S. sanctions targeting individuals and tankers transporting Iranian crude to China. In response, Iranian President Masoud Pezeshkian has urged OPEC members to stand together against potential U.S. sanctions, following Trump’s push to cut Iran’s oil exports to zero.
Geopolitical tensions in the Middle East also add to market uncertainty. Trump has warned Israel to end its ceasefire with Hamas if hostages are not returned by the weekend, increasing the risk of renewed conflict as both sides accuse each other of violating the agreement.
In another development, a Reuters poll suggests the Federal Reserve may delay interest rate cuts until the next quarter due to persistent inflation concerns. Many analysts who previously expected a rate cut in March have now revised their forecasts, with most predicting at least one reduction by June. Higher interest rates could slow U.S. economic growth, potentially dampening oil demand.
As markets assess these evolving factors, crude prices remain supported by supply risks but face headwinds from economic uncertainty.
