Oil reversed losses and climbed up to 5% after pauses in tariffs

This Wednesday, both oil Brent like him West Texas Intermediate (WTI) They bounced strong after playing minimal not seen since the beginning of 2021. the Brent scale 4.5%, up to US $ 65.71 per barrelwhile the Wti climbed 5.1%and marked the U $ S62.63.

The president of the United States, Donald Trump, said Wednesday that he authorized a 90 -day pause as part of his tariff plan, while announcing an increase in the encumbrances for China to 125% with immediate effect.

The OPEC+ decision

To the geopolitical uncertainty is added the unexpected decision of the OPEC+ to increase its oil production in May. The cartel has announced that it will add 411,000 barrels per day to the market, advancing part of the supply standardization process that had been gradually carrying out.

The magnitude of the increase is equivalent to three monthly sections of the original plan, which has generated concern among the operators that the market is being overloaded in a moment of demand of the demand.

“This is a perfect storm for crude oil prices, with the fear of a recession induced by tariffs combined with a much larger offer by producers,” they point out from Rabo Research. For their part, ING analysts warn that “the magnitude of oil drop suggests that the market is assigning greater probabilities to a recession.” In that context, they do not rule out that OPEC+ review its strategy and choose to stop or even reverse production increases if the bearish pressure persists.

The confluence of an intensified trade war and the increase in supply creates a highly volatile environment for the energy market, which must deal with an increasingly fragile balance between supply, demand and geopolitical risk.

Brent: how will impact on the prices of the overcrows of Argentina

The president and CEO of YPF, Horacio MarínHe said that the oil company is prepared to operate with lower oil prices than the current ones. “YPF can resist even with a barrel to US $ 40 without operational losses ”Marín said.

In that line, the YPF head added: “We are on the way to become an unconventional company, which allows us to be Resilient in the face of low crude prices”At the end of last year, the head of YPF promised that, as in other countries, in case International fuel values ​​fall, that reduction would move to the suppliers premises.

“I want to perform a Fair agreement With consumers. No one has to subsidize anyone. Neither we consumers nor consumers to us. Consequently, if the price of the international crude rises, the price of fuels locally will rise. If the price drops, we are going to lower”He said months ago.

In tune with that decision, in October 2024 YPF applied A 1% decline in gasoline and 2% in diesel in its service stations before the fall of the Brent crude.