Oil Prices Hold Steady as Market Reacts to Trump’s New Tariffs

Image Credit: Bloomberg

 

Oil prices remained steady at the start of the week as traders assessed the potential impact of new US tariffs and an upcoming increase in OPEC+ supply. Brent crude traded above $72 per barrel, following a 2.2% gain last week, while West Texas Intermediate hovered near $68. Reports suggest that President Donald Trump's planned reciprocal tariffs on April 2 will be more targeted than the broad measures he had previously threatened.

 

Global markets are facing heightened uncertainty and volatility as Trump escalates trade wars on multiple fronts, with the US imposing tariffs that are met with retaliation from countries like China and Canada. Oil futures have fallen more than 10% from their peak in mid-January.

 

These new tariffs will coincide with an increase in supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, which are set to resume previously halted production next month. The group plans to raise output by 138,000 barrels per day, marking the first in a series of monthly increases.

 

Meanwhile, Ukraine’s defense minister reported that discussions with US officials in Riyadh on Sunday focused on energy-related issues as part of broader talks to end Russia’s war. Separate talks between US and Russian delegates are expected to take place on Monday.

 

 

 

 

 

Paraphrasing text from "Bloomberg"all rights reserved by the original author