Oil: tariff relief vs Iranian conversations – ing

The oil market is calm in the morning operations, after closing downwards per second consecutive week last week. The news that the Trump administration is offering tariff exemptions in certain electronic products initially supported risk assets. Since then, uncertainty has returned, since President Trump suggested that exemptions are only temporary, and that other more specific tariffs could be introduced in due time. Meanwhile, market participants are digesting the implications of indirect weekend conversations between the US and Iran, which were described as constructive. More conversations are planned. This could help eliminate part of the risk of sanctions that affect the oil market, particularly if the conversations continue to progress in the right direction, the Ing raw material analysts, Warren Patterson and Ewa Manthey point out.

Speculators reduce long positions in Brent in the midst of tariff uncertainty

“It is not surprising that the latest positioning data show that the speculators significantly reduced the long net positions in Ice Brent during the last week of reports. Speculators sold 162,344 lots, leaving them with a long net position of 155,838 lots until last Tuesday. This was predominantly driven by the liquidation of long positions. There was also a small portion of new positions entering the market.

“Already, the weakness in the oil market seems to be causing a setback in the perforation activity in the US incentive for US producers to pierce.

“In the data front, China will publish its first batch of commercial data for March today, including imports of crude oil and trade of refined products. OPEC will also publish its latest monthly report of the oil market today. The group has been slower in adjusting its demand growth estimates. It will be interesting to see if the recent tariff developments take the OPEC to review the demand estimates.”