U.S. court ruling on tariffs sparks oil price surge
Oil prices on the New York fuel exchange are rising significantly following a crucial decision by the U.S. International Trade Court regarding President Donald Trump's tariffs, brokers report.
A barrel of West Texas Intermediate crude for July delivery costs $62.85 on NYMEX in New York, marking an increase of 1.63%. Brent on ICE for July is priced at $65.86 a barrel, after a rise of 1.48%. Oil is gaining significantly after an important decision by the U.S. International Trade Court concerning President Donald Trump's tariffs.
The U.S. International Trade Court found most of the global tariffs imposed by Donald Trump to be illegal and subsequently blocked them.
The court issued a unanimous decision siding with the Democratic states and small businesses that sued Donald Trump for unjustly invoking an emergency to justify the majority of the imposed tariffs. The administration has already announced it will appeal the court's decision.
Markets react to the court's decision
Chris Weston, head of research at Pepperstone Group Ltd., noted that markets interpreted the U.S. court's ruling on the illegality of tariffs as a short-term positive signal encouraging risk-taking. However, he also pointed out that fuel market traders remain attentive to oil supply dynamics in light of the upcoming OPEC+ meeting.
The OPEC+ videoconference is scheduled for May 31, during which alliance countries will decide on oil production levels for July. Group members discussed the supply levels last week and are considering the option to increase oil supply in July by 411,000 barrels per day.
The cartel had previously agreed to increase oil supplies for May and June by 411,000 barrels of oil per day.
