Oil prices rise on potential US tariff exemptions on cars, pick-up in China crude imports

BEIJING: Oil prices climbed in early trading on Tuesday, boosted by new tariff exemptions floated by President Donald Trump and a rebound in China crude oil imports in anticipation of tighter Iranian supply.

Brent crude futures gained 27 cents, or 0.42 per cent, to $65.15 per barrel by 0046 GMT, while US West Texas Intermediate crude rose 26 cents, also 0.42 per cent, to $61.79.

In the latest development in Trump’s whipsawing trade war, he said he was considering a modification to the 25 per cent tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places.

On Sunday, Trump said he would announce the tariff rate on imported semiconductors over the next week and a Monday Federal Register filing showed the administration had begun an investigation into imports of semiconductors on April 1.

Also supporting prices were data on Monday showing that China’s crude oil imports in March were up nearly 5 per cent from a year earlier, as arrivals of Iranian oil surged in anticipation of tighter US sanctions enforcement.

Kazakhstan said on Monday that its oil output fell 3 per cent in the first two weeks of April from the March average, confirming a Reuters report, although that still leaves its production above its OPEC+ quota.

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