Crude oil rebounds after weeks of decline

Crude oil prices began the week with a rebound in Asian markets after three consecutive weeks of declines.

Despite the imposition of new tariffs by Donald Trump on steel and aluminum, crude oil opened the week with an upward trend.

Brent reached the $75.10 per barrel zone, while WTI stood at around $71.40. The previous week, both contracts had recorded losses of about 2% due to the increase in U.S. crude inventories and the U.S. president’s promise to boost oil production.

The announcement of the tariffs has triggered reactions in various markets, including the energy sector. In response to these measures, China has imposed retaliatory tariffs on U.S. oil, liquefied natural gas (LNG), and coal. These actions have added pressure to the market, increasing volatility in crude oil prices.

The impact of the 25% tariffs on steel and aluminum also extends to the oil industry. Since these materials are essential for constructing and maintaining infrastructure for oil extraction and refining, their rising costs could significantly affect companies in the sector. This situation could lead to higher operational expenses and, ultimately, a reduction in the available supply in the market.

Trade tensions have heightened uncertainty among investors, influencing the recent increase in crude oil prices. The possibility that these disputes could slow global economic growth has led traders to adjust their strategies, betting on safe-haven assets such as energy commodities.

Another factor contributing to the price rebound is the perception of oil as a hedge against inflation. Inflationary fears have grown with the tightening of trade policies and rising costs of key inputs. This has led to increased demand for oil from investors seeking protection against potential currency devaluation and the overall rise in prices across the economy.

In this context, the oil market faces a challenging outlook where geopolitical and economic tensions play a key role in price formation. As the countries involved in this trade dispute continue to impose measures and countermeasures, uncertainty will shape crude oil prices in international markets.

In conclusion, the recent rebound in oil prices highlights the market’s sensitivity to external factors such as trade disputes and the economic policies of major powers. Although U.S. crude supply has increased, trade retaliations and additional industry costs have increased volatility. In the coming months, monitoring the evolution of these tensions and their impact on crude oil price stability and the global economy will be crucial.