Oil Markets React to Misleading Tariff News

In a volatile trading session on Monday, oil futures experienced a brief rally following incorrect reports about potential tariff relief by the United States. The initial surge was triggered by a misquote attributed to United States National Economic Council Director Kevin Hassett, suggesting a 90-day pause on tariffs for all countries except China.

White House Quickly Denies Reports

The White House swiftly denied these claims, leading to a reversal in oil prices. West Texas Intermediate (WTI) for May deliveries initially soared by 3.73% to $63.09 per barrel, while Brent for June settlements jumped by 2.67% to $66.61 per barrel. However, following the denial, WTI declined by 0.28% to $61.28 per barrel, and Brent remained flat at $64.72 per barrel.

Market Sensitivity to Trade Policies

This episode highlights the oil market's sensitivity to trade policy announcements and the rapid pace at which information—and misinformation—can influence global commodity prices.