Oil: Unable to escape risk-off move – ING

Oil prices came under pressure yesterday with the market and the broader complex unable to escape the sell-off seen in equity markets, ING's FX analyst Francesco Pesole notes.

Middle East market continues to show relative strength

"Tariff headlines will also not be helping sentiment with reports that President Trump will place tariffs on steel, aluminum and copper imports. In addition, the Financial Times reports that Treasury Secretary Scott Bessent is pushing for a universal import tariff of 2.5%, which will be raised gradually."

"Despite the recent weakness in the oil market, the Middle East market continues to show relative strength with its unusual premium to Brent widening to more than US$2/bbl. While the Middle Eastern market has been strengthening since late last year, it is since US sanctions against Russia that we have seen a much more meaningful move, with buyers of Russian oil looking for alternatives."

"Although oddly, despite sanctions on a large part of the Russian shadow fleet, tanker rates have been weakening more recently."