Oil Prices Climb as Trade Tensions Escalate

In a dramatic turn of events, oil futures witnessed a significant uptick this Friday. The surge is attributed to growing apprehensions among traders regarding a potential dip in global crude supplies. This concern stems from the recent imposition of tariffs by US President Donald Trump on imports from Canada, Mexico, and China.

US Tariffs Spark Global Trade Disputes

Over the weekend, the United States announced a 25% tariff on imports from Canada and Mexico, alongside a 10% tariff on Chinese goods. Specifically, Canadian oil will face a 10% tariff, while Mexican energy imports will be subjected to the full 25% levy. These measures could potentially escalate costs for consumers. In response, Canada and Mexico have vowed to impose similar duties on American products, with China planning to challenge the tariffs at the World Trade Organization.

Market Reactions to Trade Policies

Amid these developments, WTI for March delivery experienced a 2.54% increase, reaching $74.38 per barrel by 3:29 am ET. Similarly, the international benchmark Brent for April settlements saw a 1.45% rise to $76.85 per barrel shortly thereafter.