Oil prices moved higher today even as investors weighed US President Donald Trump's latest tariff threat, this time on all steel and aluminium imports, which could dampen global economic growth and energy demand.
Brent crude futures climbed 51 cents, or 0.7%, to $75.17 a barrel in early trade, while US West Texas Intermediate crude was at $71.45 a barrel, up 45 cents, or 0.6%.
The market posted its third consecutive weekly decline last week on concerns about a global trade war.
Trump said today he will announce 25% tariffs on all steel and aluminium imports into the US, in another major escalation of his trade policy overhaul.
Just a week ago, the president announced tariffs on Canada, Mexico and China, but suspended those for the neighbouring countries the next day.
In light of Trump's temporary backdown last week, investors appeared to be shrugging off the steel and aluminium tariff threat for now, Tony Sycamore, a Sydney-based analyst at IG said.
"The market has realised tariff headlines are likely to continue in the weeks and months ahead," he said, adding that there was an equal chance they could be walked back or even increased at some point in the near future.
"So perhaps investors are coming to the conclusion it's not the best course of action to react to every headline negatively."
China's retaliatory tariffs on some US exports are due to take effect today, with no sign as yet of progress between Beijing and Washington.
The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today
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