Oil Prices Climb as U.S. Court Blocks Trump’s Tariffs, Sanctions and OPEC+ Meeting in Focus

Oil prices surged by around $1 per barrel on Thursday, buoyed by a U.S. federal court ruling that blocked most of President Donald Trump’s proposed tariffs, easing concerns over a potential hit to global trade and economic growth. Brent crude futures rose $1.12, or 1.7%, to $66.02 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.14, or 1.8%, to $62.98 per barrel by 08:00 GMT.

The U.S. Court of International Trade ruled that Trump had overstepped his authority in imposing sweeping tariffs on imports from major trading partners, though it did not address industry-specific duties such as those on steel, aluminium, and automobiles. The decision sparked a rally in risk assets across global markets, as investors hoped for a de-escalation in the trade tensions that have weighed on growth prospects. However, the Trump administration’s announcement that it would appeal the ruling tempered some of the optimism.

Adding to market momentum were concerns over fresh U.S. sanctions that could further limit Russian crude exports, potentially tightening global supply. Meanwhile, OPEC+ is set to meet on Saturday, with the alliance likely to discuss an accelerated increase in oil production for July. Delegates have previously indicated that a 411,000 barrels per day hike, in line with increases for May and June, remains under consideration.

Supply risks were further underscored by Chevron’s (NYSE:CVX) complete withdrawal from Venezuela, following the Trump administration’s revocation of its operating license. Chevron had been a key player in Venezuela, exporting around 290,000 barrels per day—over a third of the country’s total oil exports—before suspending shipments in April due to payment uncertainties linked to sanctions.

Traders are also awaiting fresh U.S. inventory data from the American Petroleum Institute (API) and the Energy Information Administration (EIA). Preliminary figures suggest a decline in U.S. crude and gasoline stocks last week, while distillate inventories may have increased.

Adding to the complex supply picture, a wildfire in Alberta, Canada has forced the evacuation of a small town and temporarily shut down some oil and gas production sites, potentially limiting output from the region.

With multiple factors in play, including geopolitical risks, legal battles over tariffs, and potential supply adjustments from major producers, oil markets are bracing for continued volatility in the days ahead.