Oil Price Rise Ahead of Reciprocal Tariffs Implementation
Oil prices rose on Tuesday in the global commodities market ahead of April implementation of U.S. reciprocal tariffs, supply risks that followed sanctions on Iranian crude exports, and geopolitical tensions.
Brent crude rose by around 0.3% trading at $72.71 per barrel, up from $72.48 at the previous session’s close. The US benchmark, West Texas Intermediate (WTI) increased by 0.4%, reaching 69.30 per barrel, compared to its prior session close of $69.05.
On Friday, Trump signalled that there would be ‘flexibility’ regarding the reciprocal tariffs set to take effect on April 2. Addressing concerns over a one-month tariff exemption for automakers in March, Trump reaffirmed his stance, dismissing speculation that he had altered his position.
‘Everybody said, ‘Oh, he changed his mind on tariffs.’ I didn’t change my mind… I helped some of the American companies,’ Trump stated.
‘The word ‘flexibility’ is an important word. Sometimes it’s flexibility. So there’ll be flexibility, but basically, it’s reciprocal,’ he added.
Trump also announced plans to engage in discussions with Chinese President Xi Jinping, as China remains a key target of his trade policies.
Market analysts interpreted the exemption announcement as a sign that the US administration might adopt a more balanced and negotiable trade strategy, which has been positively received in global trade markets.
Meanwhile, Trump signed an executive order on Monday imposing tariffs on countries importing Venezuelan oil.
According to the order, beginning April 2, a 25% may be imposed on all goods imported into the US from any country that imports Venezuelan oil, whether directly from Venezuela or indirectly through third parties.
Analysts noted that the decision has driven oil prices higher by raising concerns over potential supply disruptions from major US importers.
However, the prospect of significantly higher fuel costs for US consumers and rising cost pressures on import-dependent businesses has tempered these price gains. At the same time, unresolved tensions between Russia and Ukraine, despite US-mediated peace efforts, continue to support upward price movements by heightening market concerns over supply security.
On Monday, Russia accused Ukraine of targeting an oil pumping station in the southern Krasnodar region in an overnight drone attack.
According to a statement from the Russian Defense Ministry, Ukraine attempted to strike the Kropotkinskaya pumping station around 2 a.m. local time using a drone, which was intercepted seven kilometers (4.3 miles) from the facility.
The ministry stated that debris from the intercepted drone fell near the Kavkazskaya railway station, part of Russia’s North Caucasus railway network.
On Saturday, Kyiv also launched two drone strikes on the Valuiki gas distribution station in the Belgorod region, damaging the facility’s technological infrastructure, the ministry claimed.
The accusations come as both Russia and Ukraine reportedly agreed to a temporary halt in strikes against each other’s energy infrastructure on Tuesday. However, both sides have continued to report attacks despite US diplomatic efforts to broker a peace agreement. Ukrainian authorities have yet to respond to Russia’s claims. #Oil Price Rise Ahead of Reciprocal Tariffs Implementation FCMB Climbs as Investors Await Audited Results
