Oil prices rise after court order blocking Trump tariffs; ONGC, Oil India gain

Oil prices are up today by more than 1%. This after the US Court of International Trade blocked tariffs imposed by President Donald Trump. At 3:40 p.m. Indian standard time, Brent crude for June delivery was up by 1.45% at $ 65.84 per barrel. WTI crude for June delivery was up by 1.49% at $62.77 per barrel.

Power to impose tariffs rests with US Congress, says court

US Government immediately filed an appeal against this order. If higher tariffs imposed by President Trump stay then it would be a severe jolt to international trade and global economy. It may cause a severe global economic slowdown or recession. The court order therefore has come as a relief.

The court ruled that the decision to impose tariffs rests with the US Congress and not with the US President.  Demand for oil goes down when there is a slowdown in international trade or global economy. So the court’s ruling has given an uplift to oil demand prospects. This in turn has caused oil prices to rise today.

ONGC, Oil India stocks gain

At NSE stock prices of oil production & exploration companies were up today. ONGC’s stock ended the day in green today, up by 0.73%. Oil India’s stock jumped by 3.93%, ending the day at Rs 447.05.

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Source: NSE