After three weeks of falling prices, crude oil prices started the week by rising in Asian markets. Crude oil prices began the week on an upward trend, even though Donald Trump imposed new tariffs on steel and aluminium. Brent reached a price of $75.10 per barrel, while WTI was priced at approximately $71.40. Due to the growth in crude oil stocks in the United States and the president's commitment to enhance oil output, both futures had suffered losses of roughly 2% the previous week.


The announcement of the tariffs has caused a variety of reactions in different markets, including the energy sector. In retaliation for these actions, China has placed tariffs on oil, liquefied natural gas (LNG), and coal from the United States. These activities have increased the pressure on the market, resulting in greater fluctuations in crude oil prices.

The oil industry is also affected by the 25% tariffs on steel and aluminium. Because these materials are necessary for building and maintaining infrastructure for oil extraction and refining, the increase in their prices might have a major impact on businesses in the industry. This circumstance might result in increased operating costs, which would eventually lead to a decrease in the amount of supplies accessible in the market.

The current rise in crude oil prices may be attributed to increased concern among investors due to heightened trade tensions. Traders have changed their methods and are now investing in safe-haven assets like energy commodities because of the likelihood that these disagreements might slow down global economic development.

The view of oil as a hedge against inflation is another element that is helping to the price comeback. Concerns about inflation have increased due to stricter trade policies and the rising costs of essential inputs. As a result, investors are looking for ways to shield themselves against the possibility of currency depreciation and the general increase in costs across the economy. This has caused a surge in demand for oil.

In this situation, the oil market is dealing with a difficult future in which geopolitical and economic tensions are important factors in determining prices. As the countries involved in this trade dispute continue to impose measures and countermeasures, uncertainty will shape crude oil prices in international markets.

Price Analysis

In terms of technical, the CFD trading chart for crude oil is showing a clear downtrend. The price is well off its rent highs of $81. Having said that, the price is also well off the lows of the weeks that we have seen so it also means that the buy pressure that we saw in the previous weeks may be losing some steam. The main important price levels are shown on the chart below.  

To sum up, the recent increase in oil prices shows how sensitive the market is to outside influences, like trade conflicts and the economic policies of powerful countries. Despite the fact that the supply of crude oil in the United States has gone up, the volatility has grown due to trade retaliations and higher expenses in the business. In the next several months, it will be important to keep an eye on how these tensions develop and how they affect the price of crude oil and the global economy.