You can see the Oil Pump Jack from Nolan, Texas on April 8, 2025.
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US crude oil futures rose more than 4% on Wednesday, booking the best days from October 2024 after President Donald Trump announced a decline in tariff rates in countries other than China.
US benchmarks $2.77 (4.65%) to close at $62.35 per barrel during global benchmarks Brent I won $2.66 (4.23%) to settle at $65.48 per barrel.
US crude hit a mid-day low of $55.12 early in the session after Beijing announced tariffs on US goods in response to Trump’s tax. China’s tariffs will come into effect on April 10th.
However, the oil market has turned around and its low 13% surged after Trump’s dramatic turnaround in his trade war. The president said the 10% tariff rate drop would apply to countries for 90 days, excluding China. He quickly enabled the Chinese rate to raise it to 125%.
Traders fear that the world will descend into a full-scale trade war that will cause a recession. Meanwhile, OPEC+ agreed to accelerate production in May, bringing more oil to markets that are already facing surplus.
Helima Croft, global product strategy director at RBC Capital Markets, told CNBC on Tuesday that the fear of the recession and the growth of the oil supply is a “toxic cocktail,” Helima Croft told CNBC.
The US and Iran are scheduled to hold talks in Oman on Saturday to discuss the Islamic Republic’s nuclear program. The successful negotiations could lead to more Iranian oil entering the global market.
