Oil Market Update
Oil prices experienced an uptick on Monday as the market opened for the week.
In a recent announcement, US President Donald Trump revealed plans to impose a 25 percent tariff on imported iron and aluminum. Interestingly, this development did not trigger a negative response in oil prices.
The introduction of tariffs on imported iron and aluminum could potentially dampen oil demand from manufacturing sectors.
On Monday, Brent crude rose 40 cents to $75.60 per barrel, while Texas light sweet crude climbed 38 cents, reaching $71.38 per barrel.
According to Tony Saicamore, a consultant with the IG consultancy, “Trump’s decision to postpone the implementation of tariffs for Mexico and Canada has led oil traders to downplay any negative implications from the new tariffs.” He added, “Traders and investors have acknowledged that customs regulations will ultimately be enforced, and the market has adapted to this understanding. Consequently, the new tariff announcement has not exerted immediate downward pressure on oil prices; otherwise, we would have observed a decline.”
