The market’s initial response to Trump’s threat of secondary tariffs on Russian oil was relatively subdued. Oil prices only began to rise during yesterday’s trading, as noted by Commerzbank commodity analyst Carsten Fritsch.
Trump is expected to announce a range of new tariffs.
“This morning, Brent crude hit $75 per barrel for the first time since late February. However, it’s unlikely to climb much higher. This is because the phased reversal of voluntary production cuts by eight OPEC+ countries starts today, which will increase oil supply by nearly 140,000 barrels per day.” At the same time, production cuts will be implemented to compensate for previous overproduction, potentially limiting the overall increase in supply. Still, past experiences from last year suggest caution regarding the effectiveness of these cuts.
“Additionally, with US President Trump preparing to announce a series of tariffs, concerns about demand could resurface in the oil market. As a result, we foresee the possibility of oil prices dropping again in the near future.”
Related Topics:
- Today’s Oil Price Index Chart (March 31)
- Oil Prices Drop Despite Trump’s Warning of Possible Tariffs on Russian Buyers
- Today’s WTI Crude Oil Price Chart (March 31)