Lagos — Crude oil futures are experiencing volatility, initially rebounding after U.S. President Donald Trump announced tariffs on Canada and Mexico, raising concerns about potential disruptions to oil supply from these major U.S. suppliers.
The tariffs could impact U.S. refineries that rely on heavier crude grades, creating supply uncertainty that may support global crude prices in the short term. However, these gains could be limited by fears of weakening fuel demand, especially as global economic growth faces pressure from trade tensions with China and the European Union.
While the tariffs may cause inflationary pressures, they could also dampen global demand for crude due to higher costs. Meanwhile, despite external pressure from Trump, OPEC+ is likely to maintain its production plans.
Traders will continue to monitor developments in U.S. trade policies and oil production levels, as increases in production from the U.S. or OPEC could weigh on oil prices.
