US President Donald Trump is set to announce 25% tariffs on steel and aluminium imports, sparking concerns over a potential global trade war. Despite this, oil prices have rebounded by 1.2%, driven by bargain hunting after the market posted its third consecutive weekly decline.
Brent crude futures rose to $75.53 a barrel, while US West Texas Intermediate crude gained 90 cents to reach $71.90. Analysts say investors are shrugging off the steel and aluminium tariff threat for now, but warn that tariffs could dampen global economic growth and energy demand.
China’s retaliatory tariffs on some US exports take effect on Monday, with oil and gas traders seeking waivers from Beijing for US crude imports. Trump also stated progress in talks with Russia to end the Ukraine war, although details are scarce.
Oil prices are forecast to average $60-$65 a barrel by 2025 due to expected lower energy prices under Trump’s policies. Analysts say rising natural gas prices are contributing to oil price gains, boosting demand for cheaper fuels.
Source: https://www.reuters.com/markets/commodities/oil-ticks-higher-investors-weigh-new-us-tariffs-2025-02-10