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On Tuesday, 1 April, world oil prices rose after US President Donald Trump’s statements about the possibility of new duties on Russian oil and military strikes on Iran. At the same time, concerns about the impact of the global trade war limited the growth of quotations, Reuters reports . Oil prices are influenced by many factors.
Futures for Brent rose by 0.2% to $74.93 per barrel, and for US WTI to $71.61. The day before, oil prices hit a five-week high.
Geopolitical threats and the oil market
IG market strategist Yep Jun Rong noted that traders are assessing the risks of a reduction in oil supplies due to possible US sanctions. This could also affect oil prices.
According to a Reuters poll, the oil market will be under pressure in 2024 due to Washington’s tough tariff policy, economic slowdown in China and India, and increased supply from OPEC+. These factors always affect oil prices.
The political factor: Russia and Iran in the crosshairs
On Sunday, Trump told NBC News that he may impose duties of 25% to 50% on Russian oil buyers, accusing Moscow of blocking a peaceful settlement of the war in Ukraine. This would hit Russia’s largest customers, China and India, and create possible fluctuations in oil prices.
The US president also threatened Tehran with sanctions and military strikes if Iran does not make concessions on its nuclear programme. Such statements can also affect oil prices.
“If these threats come true, it will pose serious risks to the global oil market,” ING experts say. The result could be significant fluctuations in oil prices.
Dollar and oil: additional factors of influence
In addition to geopolitical tensions, the oil market has been supported by a weaker dollar, which has made crude more affordable for buyers using other currencies. Therefore, oil prices may rise as a result.
