Global Trade Tensions Fuel Oil Price Rally

In a dramatic turn of events, oil futures witnessed a significant uptick this Friday. The surge comes in the wake of escalating trade tensions, as the United States imposes hefty tariffs on imports from Canada, Mexico, and China. This move has sparked widespread concern over potential disruptions in global crude supplies, pushing prices upward.

Impact of Tariffs on Oil Markets

The United States has announced a 25% tariff on imports from Canada and Mexico, with a 10% tariff on Chinese goods. Notably, Canadian oil will face a 10% tariff, while Mexican energy imports will be hit with the full 25% levy. These measures are expected to increase costs for consumers and have prompted retaliatory actions from the affected countries.

Retaliation and Market Reactions

In response to the US tariffs, Canada and Mexico have vowed to impose similar duties on American products. Meanwhile, China has signaled its intention to challenge the US tariffs at the World Trade Organization. Amid these developments, WTI for March delivery surged by 2.54% to $74.38 per barrel, and Brent for April settlements climbed 1.45% to $76.85 per barrel.