Oil prices rose on Tuesday, with Brent crude futures recording $70.16 per barrel, up $0.05, supported by tighter global supplies that have helped to offset persistent worries that demand will be hurt by the continuing United States-Chinese trade conflict.
Brent crude rose by 5 cents, or 0.1%, to $70.16 a barrel, while US West Texas Intermediate (WTI) was up 50 cents, or 0.8%, at $59.12.
Earlier, oil prices slumped following US President Donald Trump’s announcement that he would sharply raise tariffs on Chinese goods this week, risking the derailment of trade talks between the two largest economies.
Brent futures last week registered a decline of 4.5% and WTI was slid by 6.4% for its biggest weekly loss since December.
In Egypt’s case, the North African nation is highly vulnerable to crude oil price fluctuations, as each $1 increase in the Brent crude’s price would cost the state EGP 4bn, according to the country’s finance ministry.
Egypt’s new draft budget sets the price of Brent crude at $68 per barrel, up from $67 per barrel in the current fiscal year. In the 2017/18 budget, the price of an oil barrel globally was set at $55.
The imminent return of US sanctions on Iran and Venezuela, reducing their oil exports, in addition to continuing production cuts implemented by the Organization of the Petroleum Exporting Countries (OPEC) members and non-members, contribute to oil price hikes.
No political solution appears forthcoming to end US sanctions that have largely taken Iranian and Venezuelan crude out of global markets.