Oil Prices Surge on US-Mexico-Canada Tariffs
Oil prices soared at the market open on Monday following President Donald Trump's imposition of tariffs on Canada, Mexico, and China. The move sparked fears of a trade war and potential disruptions in crude supply from two major US suppliers.
As of 23:19 GMT, US West Texas Intermediate (WTI) crude traded at $74.27 per barrel, a rise of $1.74 or 2.4%. Earlier in the session, WTI hit a week-long high of $75.18 per barrel.
Brent crude futures also increased, rising 73 cents or 1% to $76.40 per barrel.
Trump's tariffs, ordered on Saturday, target goods from Mexico, Canada, and China. While energy products from Canada will incur a 10% duty, Mexican energy imports will be subject to the full 25% tariff.
Industry sources indicate that these tariffs will increase the cost of heavier crude grades that US refineries require for optimal production. This reduced profitability may lead to production cuts, potentially giving European and Asian refineries a competitive edge over their US counterparts.