Oil steadied after jumping on Monday as President Donald Trump suggested that the US may work to curtail crude shipments from Russia, the world’s third-largest producer and a major exporter.

Brent crude for June traded just shy of $75 a barrel, after the contract gained 2.8% on Monday, the most since mid-January. West Texas Intermediate was above $71. Trump threatened so-called “secondary tariffs” on buyers of Russian oil, potentially hurting flows, as he pushes for an end to the war in Ukraine.

“Oil markets are now more seriously considering Russian oil supply disruptions,” said Vivek Dhar, an analyst with Commonwealth Bank of Australia. “Given how successfully Russia’s oil trade has circumvented sanctions to date, we continue to see disruptions to Russia’s oil exports as an upside risk to our base case” of Brent averaging $70 a barrel this year.

The US is also set to implement levies and other trade measures on Wednesday, in what Trump has dubbed “Liberation Day.” White House Press Secretary Karoline Leavitt declined to provide details when asked about the rate of the reciprocal tariffs and which countries would be hit and said there are “no exemptions at this time.”

Crude has ended the first quarter of the year almost exactly where it started, despite wild swings in prices as traders were buffeted by conflicting drivers including geopolitical risk, forecasts for a glut and increased supply from OPEC+ from this month. While tighter sanctions on Iran and Russia could crimp supply, tariffs from the US may hurt global growth and energy demand.

Meanwhile, China’s factory activity expanded by the fastest pace in a year in March. However, the economic outlook for the world’s largest crude-importing nation remains murky, partly because of the potential impact of tariffs.

Prices:

  • Brent for June settlement rose 0.1% to $74.85 a barrel at 9:30 a.m. in Singapore.

  • WTI for May delivery advanced 0.1% to $71.55 a barrel.

. Read more on Markets by NDTV Profit.Brent crude for June traded just shy of $75 a barrel, after the contract gained 2.8% on Monday, the most since mid-January.  Read MoreMarkets, Global Economics, Business, Bloomberg 

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