Oil prices rally after a US court blocked Trump’s trade tariffs
Declining Crude stocks in the US have provided additional support to prices.
Investors remain wary that OPEC+ countries might decide to hike output on Saturday.
WTI Oil prices accelerated their recovery on Thursday, as a US court ruling against Trump’s tariffs boosted hopes for some normalisation in global trade, which will support crude demand.
The US Court for International Trade ruled on Wednesday that Trump’s unilateral trade tariffs overstep the US Congress’s authority and have blocked the levies imposed after April’s “Liberation Day”.
Before that, a report by the American Petroleum Institute (API) revealed that US Crude stocks fell by 4,236 million barrels last week, following a 2,499 increase in the previous week, providing additional support for prices.
The US Government has appealed the sentence, putting the court’s authority into question. This process is likely to draw out long, which might dampen investors’ enthusiasm at some point.
Beyond that, investors remain wary about a likely decision by OPEC+ countries to hike output after their May 31 meeting. This would bring oversupply fears back to the table, adding bearish pressure on prices.
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