Oil prices have risen after US President Donald Trump imposed new trade duties on imports from Canada, Mexico and China, raising concerns about possible disruptions in the supply of raw materials, UNN reports citing Reuters.
Details
As noted above, the potential decline in fuel demand has also limited the extent of price growth.
Futures for West Texas Intermediate (WTI) were trading at $73.89 per barrel, up $1.36 (+1.88%) from the previous figure. Earlier in the session, the price of WTI reached $75.18 per barrel, the highest level since January 24.
Brent futures rose by 73 cents (+0.96%) to reach $76.40 per barrel, while during trading the price was rising to $77.34.
On Saturday, Trump ordered large-scale tariffs on imports from China, Canada, and Mexico, which could trigger a new round of trade war, threatening global economic growth and increasing inflationary pressures.
According to the White House, energy products from Canada will be subject to a 10% duty, while energy imports from Mexico will be subject to a full 25% tax.
"The relatively lenient stance on Canadian energy imports is likely due to caution. Tariffs on Canadian energy imports are likely to be more disruptive to domestic energy markets than tariffs on Mexican energy imports, and may even be counterproductive to one of the president's key goals of lowering energy prices," said Barclays analyst Amarpreet Singh.
According to the US Department of Energy, Canada and Mexico remain the country's main oil suppliers, accounting for about 25% of the raw materials processed by US refineries to produce fuel.
Fuel prices will increase by more than 13% - NBU31.01.25, 12:12 • [views_34978]
However, oil prices may decline in the next quarter as tariffs continue to weaken demand prospects. Additional pressure on the market is also created by Trump's likely impact on OPEC+, which may force the alliance to reconsider its production cut policy.
Oil falls amid Trump's renewed call for OPEC to cut prices27.01.25, 09:58 • [views_36711]
At the same time, according to the delegates of the producer group, OPEC+ is unlikely to change its current course of gradual production increases at its meeting on Monday, despite pressure from Trump.
Recall
Bitcoin plummeted by 10% after Donald Trump imposed trade tariffs, which caused panic in the crypto market. Investors began to get rid of risky assets as the trade war between the United States, China, Canada, and Mexico escalated.
