President Trump's recent directive on Iran sanctions, initially expected to bolster oil prices, has instead introduced ambiguity that is cooling market sentiment. The directive's lack of specifics and Trump's own ambivalence have reduced the perceived risk of supply disruptions, leading to a shift in focus among traders. During his campaign, Trump promised a return to the "maximum pressure" strategy, but hi
The recent escalation in trade tensions between the US and China has led to a surge in the US dollar, as investors seek safe-haven assets amid uncertainty. China's retaliatory tariffs and a probe into Google have heightened market volatility, impacting global currencies and equities. The Australian and New Zealand dollars have weakened significantly, while the euro and pound have also retreated. US index fu
China's imposition of a broad array of tariffs in response to US trade threats has triggered a decline in risk assets, including crude oil, cryptocurrencies, and the Euro. The tariffs are expected to reduce economic activity and trade volumes, leading investors to shy away from riskier assets. Crude oil prices are particularly affected, as China's significant role as a global consumer implies reduced demand
Oil markets are facing downward pressure as President Donald Trump announced a delay in tariffs on Mexico and Canada, easing trade tensions and reducing uncertainty in North American oil trade. This move aligns with Trump's preference for affordable conventional energy, and while tariffs on China remain a possibility, upcoming talks may influence future decisions. The focus now shifts to the global crude ma
President Trump's decision to impose a 10% tariff on Canadian energy imports, effective February 4, is expected to widen the WTI-WCS price spread and increase costs for U.S. refiners and consumers, according to Citi Research. The tariff could push the WTI-WCS differential from approximately $15.5 to $18-20 per barrel, impacting U.S. domestic crude prices and potentially raising retail fuel prices by up to 1
Oil prices are experiencing a notable surge as geopolitical tensions escalate following President Trump's announcement of new trade tariffs targeting Europe. The heightened trade tensions have led to increased economic uncertainty, prompting investors to seek safe-haven assets like the US dollar, which has strengthened amid the turmoil. The tariffs are expected to impact export-dependent sectors, particular
The imposition of tariffs by the US on imports from Canada, Mexico, and China has sent ripples through global markets, with investors flocking to the dollar as a safe haven amidst escalating trade tensions. The tariffs are expected to stoke inflationary pressures, supporting higher US interest rates and further bolstering the dollar. Equity markets across the US, Europe, and Asia-Pacific have tumbled due to
The announcement of impending tariffs on China, Mexico, and Canada by the White House has injected uncertainty into the markets, with potential inflationary pressures looming. These tariffs, set to take effect on February 1, are expected to increase costs for imported goods, potentially squeezing profit margins for companies reliant on these imports. This development comes as the Federal Reserve's preferred
The oil market is experiencing heightened volatility as traders react to the latest developments in trade policy under the new Trump administration. The potential inclusion of Canadian oil in the recently announced tariffs is a significant concern, as it could disrupt the supply of crude to the United States, which imports an average of 4 million barrels per day from Canada. This disruption could lead to re
The oil market is experiencing heightened volatility as traders react to the latest tariff developments under the second Trump administration. The potential inclusion of Canadian oil in new tariff measures is a significant concern, as the U.S. imports an average of 4 million barrels per day from Canada. Any restrictions could tighten supply, particularly affecting the storage hub of Cushing and Midwest refi
The global oil market is on edge as US President Donald Trump considers a potential carve-out for crude oil in his planned tariffs against Canada and Mexico. Such a move would align with the administration's broader agenda of prioritizing inexpensive conventional energy, potentially increasing supply from these countries and driving down global oil prices. This development could be a setback for oil bulls w
The potential exclusion of oil from upcoming US tariffs could significantly alter the trade dynamics between the US and Canada, according to recent market analyses. President Trump's anticipated decision on whether to exempt energy products from new duties is expected to mitigate the adverse effects of tariffs, particularly benefiting Canada. This move could stabilize the USD/CAD exchange rate by reducing t
The announcement of 25% tariffs on Canada and Mexico by President Trump has injected a wave of uncertainty into the markets, particularly affecting sectors reliant on cross-border trade. US automakers are facing potential profitability challenges as the increased trade costs could disrupt supply chains and raise production expenses. Meanwhile, the Bloomberg Dollar Index has strengthened against the Mexican
Citi's latest analysis highlights a bearish outlook for crude oil prices, driven by U.S. policy shifts and OPEC+ dynamics. As of January 29, 2025, oil prices have eased from their January 15 peak, with Brent crude falling to approximately $76 per barrel from over $82. This decline follows President Trump's inauguration and his administration's focus on increasing U.S. oil production to lower energy costs an
The Federal Reserve's decision to maintain interest rates in the 4.25%-4.5% range has kept the yield environment for 10-year Treasuries stable, preserving their appeal relative to equities. This decision comes amid a backdrop of tech earnings volatility, with companies like Tesla and Meta Platforms showing mixed results. The Fed's unchanged stance on rates, despite acknowledging "somewhat elevated" inflatio
Crude oil futures experienced a downturn as Federal Reserve Chair Jerome Powell indicated that the central bank is not in a rush to lower interest rates, maintaining a stance that suggests prolonged higher borrowing costs. This decision, coupled with the removal of language in the Fed's statement regarding inflation progress, has heightened concerns about persistent inflation, which could lead to tighter mo
Cooling inflation in Australia has sparked expectations of a potential rate cut by the Reserve Bank of Australia (RBA), leading to a depreciation of the Aussie dollar and a drop in bond yields. The Australian 3-year yield fell by as much as 8 basis points, reflecting reduced inflation risk and heightened anticipation of lower interest rates. This environment has supported stock market indices like the ASX 2
The recent tech-led rebound on Wall Street, highlighted by significant gains in the S&P 500 and Nasdaq 100, has set a positive tone for global markets, with Asian stocks poised to follow suit. Nvidia's impressive rally of 8.9% has bolstered confidence in the tech sector, despite earlier concerns over competitive pressures from emerging AI technologies. Investors are now turning their attention to the Federa
The potential resolution of the Ukraine conflict is casting a shadow over the geopolitical risk premiums that have buoyed oil and gold prices. Recent developments, including the resignation of Serbian Prime Minister Milos Vucevic and the diplomatic overtures between Ukrainian President Volodymyr Zelenskiy and US President Trump, suggest a shift in the geopolitical landscape. These changes, coupled with Chin
The emergence of Chinese AI startup DeepSeek has prompted a reevaluation of tech stock valuations, leading to a significant selloff in Nasdaq futures and European tech stocks. This shift in sentiment has bolstered demand for safe-haven assets, with the Japanese yen and Swiss franc seeing notable gains. Meanwhile, global government bonds, including US Treasuries, have rallied, resulting in a decline in yield