Crude oil futures traded higher on Friday morning after the US President, Donald Trump, decided to delay reciprocal tariffs on US trading partners.
At 9.56 am on Friday, April Brent oil futures were at $75.13, up by 0.15 per cent, and March crude oil futures on WTI (West Texas Intermediate) were at $71.35, up by 0.08 per cent.
February crude oil futures were trading at ₹6203 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹6196, up by 0.11 per cent, and March futures were trading at ₹6213 against the previous close of ₹6205, up by 0.13 per cent.
Though Trump signed executive order on Thursday to explore reciprocal tariffs on major trading partners of the US, he asked the officials of the commerce and economics to study the tariffs and suggest their recommendations by April 1.
This came as a relief to crude oil market, as reciprocal tariffs would have led to a trade war. This could have impacted the global economy. A weak global economy impacts the demand for commodities such as crude oil.
Meanwhile, the latest monthly Oil Market Report by the International Energy Agency (IEA) said that global oil demand growth is projected to average 1.1 million barrels a day in 2025, up from 870,000 barrels a day in 2024. China will marginally remain the largest source of growth, even as the pace of its expansion is a fraction of recent trends and driven almost entirely by its petrochemical sector.
“At the same time, India and other emerging Asian economies are taking up increasing shares,” it said.
IEA report said that world oil supply plunged 950,000 barrels a day to 102.7 million barrels a day in January, as seasonally colder weather hit North American supply, compounding output declines in Nigeria and Libya. Supply was nevertheless 1.9 million barrels a day higher than a year ago, with gains led by the Americas.
Global oil supply is on track to increase by 1.6 million barrels a day to 104.5 million barrels a day in 2025, with non-OPEC+ producers accounting for the bulk of the increase if OPEC+ voluntary cuts remain in place, it said.
Global oil markets were whipsawed in January as sharply higher prices at the start of the year gave way to myriad pressure points. Anxiety over the impact of new sanctions on Russia and Iran, with fears of potential supply disruptions, triggered an upswing in prices in early January. Market sentiment quickly shifted to renewed concerns over the world economy amid emerging trade wars and its impact on the pace of oil demand growth. Following an $8 a barrel rally to a five-month high above $82 a barrel in early January, ICE Brent future prices fell back to around $75 a barrel as international trade tensions escalated, the report said.
“It is still too early to tell how trade flows will respond to new US tariffs or the prospect thereof, and what the impact of the escalation of sanctions on Iran and Russia may be in the longer run. But time and again, oil markets have shown remarkable resilience and adaptability in the face of major challenges – and this time is unlikely to be different,” IEA report said.
February zinc futures were trading at ₹269.25 on MCX during the initial hour of trading on Friday against the previous close of ₹266.80, up by 0.92 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), March jeera contracts were trading at ₹20,825 in the initial hour of trading on Friday against the previous close of ₹20,780, up by 0.22 per cent.
April turmeric (farmer polished) futures were trading at ₹12,866 on NCDEX in the initial hour of trading on Friday against the previous close of ₹12,992, down by 0.97 per cent.