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Crude Prices Mixed on Concerns Over Additional US Tariffs

Crude Prices Mixed on Concerns Over Additional US TariffsCrude Prices Mixed on Concerns Over Additional US Tariffs

Oil prices pulled back on Friday on concerns that additional US tariffs would be placed on Chinese imports, after an earlier rally triggered by worries that more sanctions on Iran might constrict supply. Crude futures ended the week up more than 1.6%, CNBC reported.

Traders said an early rally on Friday was sparked by reports US Secretary of State Michael Pompeo was going to announce new sanctions on Iran.

“It increases the odds that there will be less oil coming out of there,” said Phil Flynn, an analyst at Price Futures Group.

The gains were curbed though by reports US President Donald Trump instructed aides to proceed with tariffs on about $200 billion more of Chinese products.

Brent crude oil futures pulled back on reports of additional tariffs, dropping 9 cents a barrel to settle at $78.09. The global benchmark fell 2% on Thursday after rising on Wednesday to its highest since May 22 at $80.13. US West Texas Intermediate futures settled up 40 cents at $68.99 a barrel after dropping 2.5% on Thursday.

After a volatile week, Brent was set for a 1.6% weekly rise and WTI 1.8%.

Brent reached a session high of $78.94 a barrel, as speculators attempted to push the price above the $79.00 level. Its crude futures have reached a high around $80 a barrel three times this year before pulling back.

“The price action of yesterday confirms $80 a barrel as a strong resistance line in Brent,” consultancy Petromatrix said in a research note.

“There has been a lot of speculative interest searching for Brent above $80 a barrel on the back of the US sanctions on buyers of Iranian crude oil, but so far this year any buying of Brent above $79 barrel did not have a long shelf life.”

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