Oil Prices Remain Stable Amid Market Volatility

Oil prices stabilized near $73 a barrel, with West Texas Intermediate recovering from a 2% decline earlier this week. Russia’s efforts to bypass U.S. sanctions and Libya’s resumed oil loadings balanced the impact of President Trump’s recent tariff threats, keeping markets uncertain.

Russia Tests U.S. Sanctions with Oil Exports

Russia is shipping sanctioned crude to India using tankers blacklisted by the U.S. Treasury. This test of Moscow’s ability to circumvent restrictions comes as the country’s oil’s product exports reach an 11-month high of 2.3 million barrels per day. These developments challenge the effectiveness of U.S. sanctions and add complexity to global oil markets.

Libya Resumes Oil Exports After Protests

Oil loadings from two key ports in eastern Libya have resumed following disruptions caused by protest groups. The halt in crude exports had threatened to impact hundreds of thousands of barrels daily. This resolution eased concerns about supply shortages and contributed to stabilizing oil’s prices.

Trump’s Tariff Threats Add Market Uncertainty

President Trump has proposed universal tariffs on foreign-made goods, including steel, aluminum, and copper. While these measures initially pushed oil’s prices higher by 1.6%, uncertainty surrounding their implementation has kept the market cautious.

Analyst Outlook on Oil Supply and Demand

Crude markets have experienced a volatile start to the year due to U.S. sanctions on Russian oil’s and cold weather driving Middle Eastern barrel prices higher. However, analysts, including Bank of America, no longer predict a large oil’s surplus for 2025.

OPEC’s Upcoming Supply Policy Review

OPEC and its allies are expected to maintain their current supply policies during their upcoming review meeting. The group has resisted pressure from Trump to increase production, instead planning gradual monthly output increases starting in April.