On Tuesday, global oil prices continued to rise as concerns over Russian and Iranian oil supplies increased. However, fears of a potential slowdown in global economic growth due to U.S. trade tariffs are limiting the price surge......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Brent crude rose by 98 cents (1.3%) to $76.85 per barrel (as of 10:11 GMT).
West Texas Intermediate (WTI) crude increased by 92 cents (1.3%) to $73.24 per barrel.
This follows a nearly 2% increase in oil prices in the previous trading session, after three consecutive weeks of losses.
Why Are Oil Prices Increasing?
According to PVM oil analyst John Evans, two main factors are pushing prices up:
U.S. Sanctions on Iran and Russia:
The United States is cracking down on Iranian oil exports.
Sanctions are also restricting Russian oil shipments to China and India (two of the world’s biggest oil buyers).
Tight Supply from Asia:
Reduced supply has led to higher demand for crude oil in Asian markets.
What Could Slow Oil Prices?
While supply issues are pushing prices up, other factors could limit the increase, including:
New U.S. Trade Tariffs
On Monday, former U.S. President Donald Trump announced a sharp increase in tariffs on steel and aluminum imports to the U.S.
These tariffs apply to imports from Canada, Brazil, Mexico, South Korea, and other countries.
Trade wars can slow down global economic growth, which reduces demand for oil.
Potential Slowdown in U.S. Economic Growth
A Reuters poll suggests the U.S. Federal Reserve might delay cutting interest rates.
Keeping interest rates high could slow economic growth, reducing energy demand.
China’s Retaliation Against U.S. Tariffs
After Trump imposed an extra 10% tariff on Chinese goods, China retaliated by adding 10% duties on U.S. crude oil imports.
This could reduce demand for American oil, affecting global oil markets.
What’s Next?
Many experts believe the OPEC+ oil cartel may extend current production cuts to keep the market balanced.
U.S. oil and gasoline stockpiles are expected to have increased last week, which might affect oil prices further.
The American Petroleum Institute (API) will release a report on Tuesday, followed by a detailed report from the Energy Information Administration (EIA) on Wednesday.