Oil Prices Surge on US Tariff Exemptions and Boost in China Crude Imports

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Oil prices rose in early Tuesday trading, driven by new tariff exemptions announced by President Donald Trump and a rebound in China’s crude oil imports, as concerns about tighter Iranian oil supply lingered.

Brent crude futures increased by 27 cents (0.42%) to $65.15 per barrel, while U.S. West Texas Intermediate crude climbed 26 cents (0.42%) to $61.79.

In the latest shift in Trump’s unpredictable trade policies, he hinted at possibly altering the 25% tariffs on auto and auto parts imports from Mexico, Canada, and other countries.

This ongoing trade uncertainty has created volatility in global oil markets, prompting OPEC to reduce its demand forecast for the first time since December.

The Trump administration’s announcement on Friday, granting tariff exclusions on electronics such as smartphones and computers, which are mainly imported from China, gave a slight boost to oil prices on Monday.

Additionally, President Trump revealed plans to announce the tariff rate on imported semiconductors within the week, while a Federal Register filing indicated the start of an investigation into semiconductor imports on April 1.

Supporting oil prices further, data showed that China’s crude oil imports in March rose nearly 5% from the previous year, with an uptick in Iranian oil imports as the country anticipated stricter U.S. sanctions.

Kazakhstan reported a 3% decline in oil production during the first two weeks of April compared to March averages, though production still exceeded its OPEC+ quota.

Paraphrasing text from "Reuters" all rights reserved by the original author