Global oil prices rose on Monday following a volatile trading week, as investors reacted to Donald Trump’s latest trade policy threats. The Brent crude benchmark climbed $1.04 (1.39%) to $75.07 per barrel, while West Texas Intermediate (WTI) crude gained $1.00 (1.41%), reaching $72 per barrel.
The price recovery comes after last week’s steep decline, which was triggered by fears of a global trade war following Trump’s tariff announcements on steel and aluminum imports.
Trump’s Tariff Threats and Their Market Impact
On Sunday, Trump stated that he would officially announce a 25% tariff on all steel and aluminum imports into the U.S. This move is part of his administration’s ongoing review of trade policies, which have already affected key partners like Mexico, Canada, and China.
Although Trump temporarily suspended tariffs for Mexico and Canada last week, investors remain wary of further disruptions to global trade and energy demand. The uncertainty surrounding these policies has contributed to fluctuations in oil prices.
Investors Show Caution Amid Ongoing Trade Concerns
Despite the recent price rebound, energy market analysts warn that volatility may persist.
According to Tony Sycamore, an analyst at IG in Sydney, investors are beginning to adjust to frequent tariff-related news and are less likely to react impulsively to every new announcement.
«The market has realized that news about tariffs will likely continue for weeks or months. Investors may be concluding that it is not the best course of action to react negatively to every announcement,» Sycamore told Reuters.
Balancing Oil Demand and Economic Growth
While Trump’s tariff policies raise concerns about economic growth, their impact on oil demand remains uncertain.
- Potential economic slowdown: If tariffs escalate into a broader trade war, global economic growth could slow, reducing demand for crude oil.
- Supply-side resilience: Oil markets are also reacting to geopolitical factors, including OPEC+ production policies and U.S. shale output trends.
For now, crude oil traders will closely monitor further policy developments, with particular attention to U.S.-China trade negotiations and Federal Reserve economic signals.
What’s Next for Oil Prices?
As the market absorbs Trump’s latest tariff threats, analysts expect continued price fluctuations. Key factors that could influence oil prices in the coming weeks include:
- Further trade announcements from Washington
- OPEC+ production decisions
- Macroeconomic data on global growth and inflation
With Trump’s trade policies still evolving, investors remain cautious yet resilient, adapting to a fast-changing energy market landscape. The coming weeks will determine whether oil prices stabilize or face renewed volatility amid ongoing geopolitical and economic tensions.
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