Crude oil futures have shown volatility, rising initially after President Trump's tariffs on Canada and Mexico raised concerns about supply disruptions. The tariffs may particularly affect U.S. refineries dependent on heavier crude grades, creating uncertainty that could support short-term global crude prices. However, fears of declining fuel demand amid global trade tensions, particularly with China and the EU, pose risks. While inflationary effects of the tariffs could dampen crude demand, OPEC+ is likely to stick to its production plans, leading traders to stay focused on U.S. trade policies and production dynamics affecting prices.
Crude oil futures are experiencing volatility, initially rebounding after U.S. President Donald Trump announced tariffs on Canada and Mexico, raising concerns about potential disruptions to oil supply from these major U.S. suppliers.
The tariffs could impact U.S. refineries that rely on heavier crude grades, creating supply uncertainty that may support global crude prices in the short term.
While the tariffs may cause inflationary pressures, they could also dampen global demand for crude due to higher costs.
Traders will continue to monitor developments in U.S. trade policies and oil production levels, as increases in production from the U.S. or OPEC could weigh on oil prices.
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