Oil prices are up, reaching a one-month high, driven by new US tariffs on countries trading with Iran and concerns over supply disruptions. These factors are outweighing expectations of increased supply from Venezuela.
- WTI crude oil futures rose more than 1% to above $60 per barrel.
- US President Trump announced 25% tariffs on goods from any nation that does business with Iran.
- Trump has warned of possible military action against Iran.
- Kazakhstan’s oil output is facing challenges from weather, maintenance, and damage to Russian infrastructure.
- These factors counterbalanced expectations of increased crude supply from Venezuela’s anticipated return to exports.
The outlook for this asset is increasingly bullish due to geopolitical tensions and supply-side constraints. New tariffs and the threat of military action against a major producer like Iran are injecting uncertainty into the market, likely to keep prices elevated. Challenges to output in Kazakhstan further exacerbate supply concerns, mitigating the potential impact of increased supply from other sources.