Oil prices traded near fresh five-week highs on Tuesday as supply concerns grew following threats by United States President Donald Trump to impose secondary tariffs on Russian crude and take action against Iran.
By 3:05 pm AEDT (4:05 am GMT), Brent crude futures for June delivery rose $0.20, or 0.3%, to $74.97 per barrel, while US West Texas Intermediate (WTI) crude futures gained $0.14, or 0.2%, to $71.61 per barrel.
Trump expressed anger toward Russian President Vladimir Putin, stating he was considering “secondary tariffs” to curb Russian oil exports.
Analysts at ANZ noted: “Any impact on such a move would be driven by the reaction from Russia’s biggest buyers of its crude, China and India. Both countries have taken up the slack amid reluctance by European and U.S. traders to handle its crude.”
Traders are now awaiting weekly inventory data from the American Petroleum Institute (API) later on Tuesday, followed by official figures from the U.S. Energy Information Administration (EIA) on Wednesday.
Meanwhile, a weaker U.S. dollar provided additional support for oil prices. A softer dollar makes crude more affordable for buyers using other currencies, boosting demand.
