Crude Oil Prices Rise: Trump Tariffs Blocked
- court decision that blocked President Trump's "Liberation Day" tariffs.
- Meanwhile, the market anticipates OPEC+'s upcoming decision on July output levels at a Saturday meeting.
- overnight data from the American Petroleum Institute showed a 4.24 million barrel decrease in U.S.
Oil prices surged Wednesday as a U.S. court blocked Trump’s tariffs, fueling gains in energy markets due to reduced supply expectations. This ruling,coupled with escalating sanction risks on Russia and fading nuclear deal hopes,significantly impacted the market. The primary_keyword “oil prices” witnessed a boost, with the secondary_keyword “copper” also experiencing a rally. Market analysts anticipate fresh output increases from OPEC+, with the weekend meeting holding key insights. This comes as LME copper inventories hit a two-year low, amplifying price volatility due to trade uncertainties. Find the latest on these commodities with News directory 3, covering global commodities. Discover what’s next as traders watch for further developments in production policies and tariff impacts.
Oil,Copper Prices Rise Amid Tariff Ruling,Inventory Drops
Updated May 29,2025
Oil markets saw gains Wednesday following a U.S. court decision that blocked President Trump’s “Liberation Day” tariffs. The ruling, combined with increasing sanction risks against Russia and fading hopes for a U.S.-Iran nuclear deal, boosted sentiment in energy markets.
The Trump management is appealing the tariff decision. Meanwhile, the market anticipates OPEC+’s upcoming decision on July output levels at a Saturday meeting. Expectations are for another large supply increase of 411,000 barrels per day, with similar increases expected through the third quarter as OPEC+ focuses on market share.
overnight data from the American Petroleum Institute showed a 4.24 million barrel decrease in U.S. crude oil inventories. Stocks at Cushing also fell by 342,000 barrels. gasoline inventories declined by 528,000 barrels, while distillate stocks increased by 1.3 million barrels.
In Europe,investment funds increased their net long position in the Title Transfer facility (TTF) by 16.5 TWh, reaching just over 100 TWh. This surge was largely driven by fresh buying amid Norwegian outages, marking the largest position held by speculators in TTF since early April.
The European Commission reported the total number of allowances in circulation (TNAC) in the EU market at 1,148,049,585 in 2024. Due to the surplus environment, approximately 276 million allowances will be placed into the Market Stability Reserve (MSR) between Sept. 1, 2025, and Aug. 31, 2026.
In the metals market, copper inventories on the London Metal Exchange (LME) have fallen to their lowest level in almost two years. Withdrawals continue at warehouses in Rotterdam, with Glencore reportedly planning to deliver Russian-origin metal to China.
LME copper stocks now stand at 83,000 tons, the lowest since August 2023. Shanghai Futures Exchange (SHFE) copper inventories are also at their lowest since 2022.This comes as markets tighten amid a U.S. investigation into potential import tariffs on copper.
Recent trading sessions saw copper prices rise following these inventory withdrawals. However, copper prices have experienced volatility this year, largely driven by tariff risks and uncertainty surrounding China’s economic outlook.
The latest Commitments of Traders report (COTR) indicates that speculators decreased their net long position in WTI crude oil by 2,957 lots to 89,957 lots for the week ending May 23. Net bullish bets for copper also fell for a third consecutive week,decreasing by 765 lots to 67,858 lots. Conversely, money managers increased net bullish bets for zinc by 1,112 lots to 12,338 lots, the highest as April 11, 2025.
What’s next
Market participants will closely monitor the OPEC+ meeting this weekend for further direction on oil production policy. Additionally, traders will be watching for any updates regarding potential tariffs and their impact on global commodity flows.