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At 10:32 GMT, Light Crude Oil Futures are trading $62.03, up $0.98 or 1.44%.
Tariff Exemptions and China Import Rebound Support Prices
Oil gained around 1% after the U.S. announced new tariff exemptions on key Chinese electronics. The move helped ease trade tensions and supported broader market sentiment.
At the same time, China’s crude imports jumped nearly 5% year-on-year in March, rebounding from a two-month dip. More Iranian barrels and a pickup in Russian deliveries contributed to the increase. These two developments helped stabilize crude prices to start the week.
Weak Demand Outlook Keeps Pressure on Oil Prices
Despite Monday’s move higher, oil is still down about $10 per barrel since the start of the month. Goldman Sachs now sees Brent averaging $63 and WTI $59 for the rest of 2025, with both benchmarks set to decline further in 2026.
The bank expects global oil demand to grow by just 300,000 barrels per day in Q4, with the weakest growth seen in petrochemical feedstocks. Meanwhile, the Brent futures curve has flipped into contango, signaling that traders expect oversupply to continue.
Production Slows, Geopolitical Risk in Play
The U.S. rig count fell for a third straight week, showing signs of slowing production. There’s also geopolitical risk in the mix. The U.S. is considering a full block on Iranian oil exports, though recent talks with Tehran were described as “constructive.” If diplomacy continues, some of that sanction risk could fade.
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