By Colleen Howe
BEIJING (Reuters) – 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%, to $65.15 per barrel by 0046 GMT, while U.S. West Texas Intermediate crude rose 26 cents, also 0.42%, to $61.79.
In the latest development in Trump’s whipsawing trade war, he said he was considering a modificationto the 25% tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places.
The vacillating U.S. trade policies have created uncertainty for global oil markets and pushed OPEC on Monday to lower its demand outlook for the first time since December.
The Trump administration had announced on Friday that it would grant exclusions from tariffs on smartphones, computers and some other electronic goods, most of which are imported from China. That drove both oil benchmarks to settle up slightly higher on Monday.
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% from a year earlier, as arrivals of Iranian oil surged in anticipation of tighter U.S. sanctions enforcement.
Kazakhstan said on Monday that its oil output fell 3% 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.
(Reporting by Colleen Howe; Editing by Sonali Paul)
