Oil Prices Climb as Market Reacts to ‘Great Reciprocal Tariffs’
Oil prices climbed on Friday as market reacted to US President Donald Trump’s plan for ‘great’ reciprocal tariffs. Meanwhile, the possibility of a peace treaty between Russia and Ukraine, along with data suggesting a rise in Russia’s oil production, would continue to cap further price increases.
The international benchmark Brent crude rose by 0.4%, trading at $75.18 per barrel while the US benchmark West Texas Intermediate (WTI) increased by 0.3%, reaching $71.51 per barrel, compared to its prior session close of $71.26.
US President Donald Trump outlined his plan for what he called ‘great’ reciprocal tariffs on US trading partners, which would impose duties and other economic penalties on American imports.
Addressing reporters in the Oval Office, Trump said that his action would target value-added tax and non-monetary tariffs imposed by foreign countries on US goods, but noted that goods made in the US would be exempt.
The new economic penalties, which Trump described as ‘fair to all,’ would be in addition to other duties he has already implemented since taking office in January. The president acknowledged that ‘prices could go up somewhat short-term,’ but maintained that he believes they ‘will also go down.’
While work on reciprocal tariffs is expected to be completed by April 1, experts warn that sweeping tariffs could lead to a trade war, potentially negatively impacting global growth and reigniting inflation, which could drive up oil prices in the long run.
Meanwhile, a potential peace agreement between Russia and Ukraine, along with data indicating an increase in Russia’s crude oil production, has prevented prices from rising further.
Trump said Wednesday that after separate phone calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy, he instructed US officials to begin negotiations to end the war in Ukraine.
Experts say a possible peace deal between Russia and Ukraine could lead to the lifting of sanctions against Moscow, which could increase global energy supplies and suppress oil prices.
According to the International Energy Agency’s (IEA) latest report, Russia’s crude oil production increased slightly last month. The report noted that despite the introduction of new sanctions by the US, Russian oil exports could resume if ways are found to circumvent these restrictions.
This alleviates supply concerns among market players, supporting the downward movement of prices. Experts predict that oil prices may continue to fluctuate depending on political developments in the coming period. #Oil Prices Climb as Market Reacts to ‘Great Reciprocal Tariffs’ FG to Construct 10,000 Housing Units for Medical Workers Nationwide
