US President Donald Trump’s imposition of duties against Canada, Mexico and China has triggered a rise in global oil prices as traders fear disruptions in the supply of raw materials. This is reported by Reuters.
How did prices rise?
Futures for West Texas Intermediate (WTI ) jumped 1.9% to $73.89 per barrel, reaching a high of $75.18 during the session.
Brent futures rose 0.9% to $76.34 per barrel, after a peak of $77.34.
Petrol in the United States rose by 2.86%, reaching $ 2.1176 per gallon.
Why is this important?
Canada and Mexico are the main suppliers of crude oil to the US, accounting for a quarter of imports. The tariffs could hamper the flow of crude oil to US refineries, raising the risk of higher fuel prices.
Analysts warn that prices could fall after the next quarter due to:
- Weaker demand due to economic uncertainty.
- Trump’s pressure on OPEC+ to increase production.
