While investors considered U.S. President Donald Trump’s most recent tariff threat, this time on all imports of steel and aluminum, which might impede global economic development and energy consumption, oil prices increased little on Monday.
By 0734 GMT, U.S. West Texas Intermediate crude was up 50 cents, or 0.7%, to $71.50 a barrel, while Brent crude futures had increased 54 cents, or 0.7%, to $75.20 a barrel. Last week, worries over a global trade war caused the market to register its third straight weekly fall.
Trump stated that, as part of a significant expansion of his trade policy reform, he will impose 25% tariffs on all steel and aluminum imports into the United States on Monday.
Only a week ago, the president declared tariffs on China, Canada, and Mexico, but the following day, he halted them for the neighboring nations.
According to Tony Sycamore, an analyst at IG headquartered in Sydney, investors seemed to be ignoring the steel and aluminum tariff threat for the time being following Trump’s brief concession last week.
He stated, “The market has realized tariff headlines are likely to continue in the weeks and months ahead,” but he also acknowledged that there was a potential they would be lifted or even raised soon.
“So perhaps investors are coming to the conclusion it’s not the best course of action to react to every headline negatively.”
With little indication that Beijing and Washington are making headway, China’s retaliatory tariffs on a number of U.S. products are scheduled to go into effect on Monday.
