Oil Prices Edge Higher Amid Trade Tensions
Oil prices increased slightly as investors analyzed the impact of the U.S. government’s new tariffs. The latest policy targets steel and aluminum imports, raising concerns about global economic growth and energy demand.
Brent crude rose by 51 cents (0.7%), reaching $75.17 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude increased by 45 cents (0.6%) to $71.45 per barrel. Despite this gain, oil prices have declined for three consecutive weeks due to fears of a global trade war.
New U.S. Tariffs and Their Impact on Oil Price
President Donald Trump announced a 25% tariff on all steel and aluminum imports. This move follows a previous round of tariffs on Canada, Mexico, and China. Although some tariffs were temporarily suspended, the trade conflict continues to create uncertainty.
China has responded by imposing its own tariffs on U.S. goods. As a result, energy traders are requesting waivers to continue exporting American crude oil and liquefied natural gas to China. Without exemptions, oil prices could face further volatility.
Geopolitical Factors Affecting Oil Price
In addition to trade tensions, global politics is shaping oil prices. The U.S. government imposed sanctions on Russia’s oil trade in January, disrupting supplies to major buyers like China and India. Moreover, new sanctions on Iranian crude oil shipments are reducing available supply in the market.
Experts believe sanctions on Iran, combined with the lack of a new nuclear deal, could push oil prices higher. However, the U.S. government is actively working to lower energy costs, creating mixed signals in the market.
Oil Prices Outlook for 2025
Despite short-term gains, oil prices may decline later in the year. Analysts at Citi predict that Brent crude will average between $60 and $65 per barrel in the second half of 2025. They expect U.S. policies to influence global oil prices, leading to fluctuations in the coming months.
While oil prices are currently rising, uncertainty remains high. Investors and consumers should closely watch trade developments, sanctions, and supply trends to understand future oil market movements.
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