By Yuka Obayashi
TOKYO (Reuters) – Oil prices eased on Monday, heading for a slight quarterly loss despite a warning by U.S. President Donald Trump that he may impose secondary tariffs on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
The more active June Brent crude futures fell 17 cents, or 0.2%, to $72.59 a barrel by 0028 GMT, while U.S. West Texas Intermediate crude declined 18 cents, or 0.3%, to $69.18 a barrel. Front-month Brent, which was up 8 cents, or 0.1%, at $73.71, expires later on Monday.
Both benchmarks settled lower on Friday but recorded a third consecutive weekly gain. They were on track to end the month nearly flat and post their first quarterly drop in two quarters.
U.S. President Donald Trump said on Sunday he was “pissed off” at Russian President Vladimir Putin and will impose secondary tariffs of 25% to 50% on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
His sharp comments about Putin reflect his growing frustration about the lack of movement on a ceasefire. Trump said he could impose the new trade measures within a month.
“Trump comments were supposed to boost oil prices, but doubts about their feasibility and the upcoming OPEC+ production increase starting in April are keeping investors cautious,”
said Yuki Takashima, economist at Nomura Securities.
“We expect WTI to stay in a range of $65 to $75 for now as the market assesses the impact of Trump tariffs on oil supply and global economy, as well as the supply situation from the U.S. and OPEC+,” he said.
The OPEC+ group, which comprises OPEC and allies led by Russia, is set to begin its program of monthly increases to oil production in April. The group will likely continue to raise oil output in May, Reuters reported last week.
Top oil exporter Saudi Arabia may lower its crude prices for Asian buyers in May to a three-month low, tracking the steep declines in benchmark prices this month, traders said.
Meanwhile, talks to restart Kurdish oil exports through the Iraq-Turkey pipeline have hit a snag as a lack of clarity over payments and contracts persists, two sources with direct knowledge of the matter told Reuters, speaking on condition of anonymity.
The negotiations, which started in late February, have so far failed to end a nearly two-year stand-off that has halted flows from Iraqi Kurdistan in the north of the country to Turkey’s Mediterranean port of Ceyhan.
Trump also threatened Iran on Sunday with bombing and secondary tariffs if Tehran did not come to an agreement with Washington over its nuclear program.
(Reporting by Yuka Obayashi)
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