Oil prices rise on Monday after the US president, Donald Trump, imposed tariffs on Canada, Mexico and China, which generates concerns about possible interruptions in the supply of crude oil by the two main US suppliers. However, the perspective of a lower fuel demand limited profits.
The future West Texas Intermediate (WTI) crude U $ S75.18 per barrel in the session.
On the other hand, the Brent futures rise 73 cents, or almost 1%, to US $ 76.40 per barrel, after touching a maximum of US $ 77,34. On Saturday, Trump ordered the application of wide tariffs to products from Mexico, Canada and China, unleashing a commercial war that could affect global growth and revive inflation.
The energy products from Canada will face Only a 10 %tariff, while Mexico’s energy imports They will be subject to the full 25 %tariff, according to White House officials.
“The relatively moderate posture about Canadian energy imports probably obeys caution,” said Amarpreet Singh, an analyst at Barclays.
Market reaction
“Tariffs on Canada’s energy imports could be more disruptive for internal energy markets than those in Mexico and could even be counterproductive for one of the president’s main objectives: reduce energy costs.”
Goldman Sachs analysts expect tariffs to have a limited impact on global oil and gas prices in the short term.
Canada and Mexico are the main sources of importation of US crude oil, representing together approximately a quarter of the oil that US refineries process to produce fuels such as gasoline and diesel, according to the US Department of Energy.
Tariffs will raise the costs of the heaviest raw than US refineries need for optimal production, which would reduce their profitability and force them to cut production, industry sources indicated.
Futures of gasoline in the US rose 2.66 % to US $ 2,11 per gallon, after having reached US $ 2,16, its highest level since January 16.
Tariffs represent a bullish factor for oil prices in the short term due to supply interruption risks, especially for the heaviest raw, said Saul Kavonic, energy analyst at MST Marquee.
However, oil prices could fall beyond the next quarter as tariffs further deteriorate demand prospects and increase the pressure on the OPEC+ by Trump to revert the production cuts, he added.
The organization of oil exporting countries (OPEC) and its allies, a group known as OPEC+, it is unlike of Trump’s pressure.
Source: Ambito
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