Oil Prices Rise After Four-Session Slump
After a 6% decline over four sessions, oil prices rebounded as the market evaluated the impact of Donald Trump’s tariffs on major U.S. trading partners.
Brent crude climbed toward $70 per barrel.
West Texas Intermediate (WTI) hovered near $67 per barrel.
Despite the rebound, oil remains under bearish pressure due to:
- U.S. trade policies rattling global demand.
- OPEC+ planning to revive idled production in April.
- Rising U.S. crude stockpiles, adding to supply concerns.
Trump Tariffs Create Market Uncertainty
Key developments influencing oil markets:
Trump delays some auto tariffs, while still moving forward with reciprocal levies on April 2.
China and Canada retaliate, imposing tariffs on U.S. goods.
Mexico preparing response, with potential reduced crude exports to the U.S..
Canada explores pipeline expansion, aiming to boost shipments to Asia and Europe.
Expert take:
“Import tariffs are inflationary and impact industrial demand, particularly diesel consumption,” said June Goh, senior oil market analyst at Sparta Commodities.
Oil Market Outlook – More Volatility Ahead?
Morgan Stanley revised its Brent price forecast, expecting prices to trade in the $60 range in H2 2025.
U.S. crude inventories rose by 3.61 million barrels, hitting their highest level since July 2024.
Potential catalysts for further price swings:
OPEC+ production policy shifts – Any changes to output plans could drive volatility.
Global trade war escalation – More retaliatory tariffs may reduce demand growth.
U.S. economic indicators – Signs of a slowdown could further dampen oil consumption.