The oil market liked Trump’s tariffs on cars – crude oil went up
27 March 08:50
World oil prices rose sharply on Thursday due to concerns about the situation on global markets. The main factors were potential US trade restrictions on buyers of Venezuelan oil and new sanctions against Iranian suppliers, "Komersant Ukrainian" reports citing Reuters.
Current market situation
According to international financial sources, as of 6 a.m. Kyiv time, Brent crude oil futures rose by 7 cents, or 0.1%, to $73.86 per barrel. At the same time, US West Texas Intermediate futures rose by 10 cents, or 0.1%, to reach $69.75 per barrel.
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Key factors
Experts point to several key factors:
- US trade restrictions: President Trump’s administration announced additional tariffs on oil imports from Venezuela, which immediately affected world prices.
- Reaction of international companies: In particular, the Indian corporation Reliance Industries has already announced that it will stop importing Venezuelan oil in response to the US sanctions.
- Impact of automobile tariffs: The introduction of a 25 percent duty on imported cars may indirectly affect oil demand by slowing the transition to more fuel-efficient models.
US President Donald Trump has announced a 25% duty on imported cars and light trucks, which will come into effect next week. This news has encouraged oil producers.
“The news of Trump’s tariffs on cars could actually be positive for crude oil, because the increase in new car prices due to tariffs will mean that it will slow the transition to newer, more fuel-efficient models,”
– commented Tony Sycamore, market analyst at IG.
A survey conducted by the Dallas Fed showed a slight increase in activity in the US oil and gas sector during the first quarter. However, industry experts are pessimistic about the future prospects due to the possible rise in equipment prices as a result of trade restrictions.
The market is closely monitoring further developments in the geopolitical situation and its potential impact on global oil prices.
Expert forecasts
Analysts at DBS Financial Group believe that the current price dynamics partially reflects geopolitical risks. However, they do not expect a return to high prices in early 2025 due to uncertainty in global trade policy.
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