Crude Oil Surges After Trump Tariffs Get Blocked By US Court

Crude oil prices surged by nearly 2% on Thursday after a federal court in the U.S. blocked President Donald Trump’s tariffs. The commodity pared some of the gains at the time of writing.

A U.S. federal trade court observed that the Trump administration lacked any authority under the International Emergency Economic Powers Act to impose levies.

U.S. West Texas Intermediate (WTI) futures traded 0.90% higher at $62.40 per barrel, compared to its closing price of $61.84.

Brent futures surged 0.85% to $64.87 per barrel.

Investor sentiment showed an uptick on Thursday morning, reflected in equity futures, too. Dow Jones futures surged 0.50% at the time of writing, while the S&P 500 futures were up 1.08%.

Bjarne Schieldrop, chief commodities analyst at SEB, told Reuters that markets are positive on the setback to the Trump administration.

"That's less headwind for the global economy, so more demand for oil because the machine of the global economy moves better and faster,” Schieldrop said.

This also comes at a time when the OPEC+ group (the Organization of the Petroleum Exporting Countries and their allies) agreed to reaffirm the crude oil production levels for OPEC and non-OPEC participating countries, as agreed upon during a December meeting of the alliance.

The group is also expected to announce a third consecutive hike of 411,000 barrels in July–it had hiked output by these levels in May and June.

The United States Oil Fund LP (USO) rose 0.74%, while the ProShares Ultra Bloomberg Crude Oil (UCO) surged 0.93% at the time of writing.

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