Duygu Alhan
03 February 2025•Update: 03 February 2025
ANKARA
Oil prices rose on Monday with US President Donald Trump's decision to impose broad tariffs and uncertainty surrounding the global oil market ahead of the OPEC+ meeting.
The international benchmark Brent crude rose by 0.03%, trading at $76.33 per barrel at 11 am local time (0800GMT), up from $76.30 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) increased by 0.2%, reaching $73.56 per barrel, compared to its prior session close of $73.40.
Oil markets began the week on an upswing after Trump's decision to impose tariffs on Canada and Mexico, two of its largest oil suppliers, heightened supply concerns.
On Saturday, Trump signed an executive order imposing a 25% tariff on imports from Canada and Mexico, effective from 12.01 am (0501GMT) Tuesday. Additionally, a lower 10% tariff will apply to energy resources from Canada.
Trump also announced a 10% tariff on Chinese imports.
In response, China stated it would take measures against the tariff decision and file a complaint with the World Trade Organization (WTO) while Canada's Prime Minister Justin Trudeau said Saturday that his country has struck back on US tariffs with CAN$155 billion (US$106 billion) in tariffs on American products entering Canada.
Experts believe that Trump's wide-ranging tariffs on goods from Mexico, Canada, and China could harm global growth and potentially spark a trade war, reigniting inflationary pressures.
The tariffs have fueled upward price movements by raising concerns over supply disruptions from the US' top importers. However, the prospect of significantly higher prices for US consumers and increased cost pressures on import-dependent businesses has tempered these price gains.
Meanwhile, market participants will follow OPEC's Joint OPEC/non-OPEC Ministerial Monitoring Committee meeting scheduled for later in the day.
During the meeting, members are expected to review current market conditions and discuss decisions regarding the global demand-supply balance.
According to the group's latest decision, voluntary production cuts will continue through the end of the first quarter of the year, while collective cuts are set to remain in effect until the end of 2026.
