Oil prices rose after Trump's new statements: analysts predicted how global oil markets will change further

The unstable U.S. trade policy is creating uncertainty in global oil markets, and on Monday, OPEC lowered its demand forecast for the first time since December.
Oil prices rise

Oil prices have increased due to new proposals by U.S. President Donald Trump regarding tariff exemptions, as well as the resumption of crude oil imports by China amid expectations of reduced supply from Iran.

Brent crude futures rose by 12 cents, or 0.2%, to $65 per barrel, while U.S. West Texas Intermediate climbed by 13 cents, or 0.2%, to $61.66.

"Trump allowed tariff exemptions for electronics and signaled a possible easing of car tariffs, which is seen as a retreat from previously announced import duties. This slightly eased pressure on risk assets, including oil," said independent market analyst Tina Teng.

"However, the rise in stock markets and growth-sensitive commodities raises skepticism, as his policies remain unpredictable."

In another twist in the trade war, Trump announced he was considering altering the 25% tariffs imposed on car and auto parts imports from Mexico, Canada, and other countries.

On Friday, the Trump administration announced that it would exempt smartphones, computers, and some other electronic goods—mostly imported from China—from tariffs. This contributed to a slight increase in oil prices on Monday.

On Sunday, Trump stated that he would announce a tariff rate on semiconductor imports during the week. According to Monday’s Federal Register, the administration launched an investigation into semiconductor imports on April 1.

"The market is reacting to rapid changes in tariff policy while also considering nuclear talks between the U.S. and Iran," read Tuesday’s analysis note from ING.

"Clearly, market attention is focused more on tariffs and how they will affect oil demand."

U.S. Energy Secretary Chris Wright said on Friday that the United States could completely halt Iranian oil exports as part of Trump’s pressure campaign on Tehran over its nuclear program.

Prices were also supported by Monday’s data showing that China’s crude oil imports in March rose nearly 5% compared to last year, as shipments from Iran surged in anticipation of tightened U.S. sanctions.

Source: Reuters.

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