Oil is an important resource in the modern world.Photo: getty images
On Tuesday, global oil prices rose slightly in response to two key factors – new statements by US President Donald Trump regarding possible exemptions from tariffs and an increase in crude oil imports by China. This is reported by Reuters.
- Brent rose by 0.2% to $65 per barrel
- WTI added 0.2% to $61.66 per barrel
Tina Teng, an independent analyst, notes that the White House’s signals to ease tariffs on electronics and auto parts have provided short-term relief for risky assets, including oil. However, markets remain cautious due to the unpredictability of Trump’s policies.
What is behind the price increase?
Tariff exemptions: Trump announced new exemptions from tariffs on electronics, including smartphones and computers from China, and hinted at the possibility of reducing car tariffs. In this light, oil is also reacting positively.
Iranian factor: The United States is threatening to completely cut off Iranian oil exports as part of its pressure on Tehran’s nuclear programme.
Chinese imports: In March, China’s crude oil imports increased by almost 5% year-on-year, mainly due to advance purchases from Iran before the tightening of sanctions. This increase in imports underscores the importance of oil to China.
Impact on OPEC: Due to the unpredictability of US politics, OPEC lowered its oil demand forecast for the first time since December.
“The market is now carefully weighing the news about the tariffs and the prospects for nuclear talks with Iran. Obviously, attention is focused on the tariffs and their impact on oil demand,” ING analysts said.
