Oil prices rose slightly in Asian trading on Friday but remained on course for a third consecutive weekly decline, pressured by renewed trade tensions between the United States and China.
By 3:35 pm AEDT (4:35 am GMT), Brent crude futures were up $0.26 or 0.4% to US$74.55, while U.S. West Texas Intermediate (WTI) crude for April rose $0.22 or 0.3% to $70.59 per barrel.
The U.S. Department of the Treasury imposed sanctions on Thursday on a network of over a dozen individuals and firms accused of facilitating the shipment of millions of barrels of Iranian oil to China.
The sanctions target entities and individuals in China, India, and the United Arab Emirates, as well as several vessels.
Meanwhile, ANZ analysts said in a note to clients: “There are also signs emerging that US sanctions on Russia are taking effect. Russia’s flagship crude oil dropped below a price cap of USD60/bbl for the first time since December. Sellers of Ural, the nation’s key export grade are having to swallow discounts of as much as USD16/bbl, according to data from Argus Media. At the same time, the spread between export prices at Russian ports and import prices at Asian destinations have ballooned. Tighter sanctions are likely to have an immediate impact on the physical market.”
Over the weekend, Trump announced a 10% tariff on Chinese imports as part of a broader strategy to address the U.S. trade deficit. However, he held off on imposing similar levies on Mexico and Canada.
