U.S. court ruling boosts oil prices amid market reactions
Oil prices on the New York commodities exchange are rising sharply following an important decision by the U.S. Court of International Trade concerning President Donald Trump's tariffs, brokers report.
A barrel of West Texas Intermediate oil for July delivery costs $62.85 on NYMEX in New York, up by 1.63%. Brent on ICE for July is priced at $65.86 a barrel, after rising 1.48%. Oil is gaining significantly after the important decision by the U.S. Court of International Trade regarding President Donald Trump's tariffs.
The U.S. Court of International Trade ruled that most of the global tariffs imposed by Donald Trump were illegal and blocked them.
The court issued a unanimous decision siding with the Democratic states and small businesses that sued Donald Trump for unjustly invoking a state of emergency to justify most of the imposed charges. The administration has already announced it will appeal the court's decision.
Markets react to the court's decision
Chris Weston, head of research at Pepperstone Group Ltd., noted that markets interpreted the U.S. court's ruling on the illegality of tariffs as a short-term positive signal encouraging risk-taking. However, he also pointed out that fuel market traders remain attentive to oil supply dynamics in light of the upcoming OPEC+ meeting.
The OPEC+ videoconference is scheduled for May 31, and alliance countries will determine oil production levels for July. Members of the group preliminarily discussed supply levels last week and are considering, as one option, an increase in oil deliveries in July by 411,000 barrels per day.
The cartel had previously set an increase in oil supplies for May and June by 411,000 barrels of oil per day.
