Oil prices drop over 1% as investors consider impact of US court ruling on Trump tariffs.

From Yahoo Finance: 2025-05-28 21:08:00

Oil prices fell over 1% on Thursday as investors considered the impact of a U.S. court ruling blocking Trump’s tariffs. Brent crude settled at $64.15 a barrel, while U.S. WTI crude fell to $60.94. The market also watched for potential new U.S. sanctions on Russian crude and an OPEC+ decision on output hikes.

The U.S. trade court ruled Trump overstepped authority with tariffs, causing an initial rise in prices that later retreated. IEA’s Birol noted weak oil demand in China and uncertainties in Russia and Iran. Talks between the U.S. and Iran regarding nuclear activities are ongoing, impacting market sentiment.

OPEC+ may accelerate oil production hikes in July, with concerns about sanctions on Russian crude. Chevron terminated oil production in Venezuela after a license revocation, impacting a third of the country’s total oil production. Rystad Energy expects demand growth to outpace supply by 600,000 to 700,000 bpd.

Oil futures rebounded after U.S. crude inventories posted a surprise draw, falling by 2.8 million barrels. A wildfire in Alberta forced town evacuations and a temporary shutdown of oil and gas production, potentially reducing supply.



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