Oil Prices Climb 1% After Heavy US Tariff-Driven Selloff
Oil prices were up around 1% on Tuesday, rebounding from a near four-year low in the previous session on concerns that U.S. tariffs might depress demand and lead to a global recession, though analysts warned downside risks remain.
Brent futures were up 66 cents, or 1%, at $64.87 per barrel, while U.S. West Texas Intermediate crude futures rose 67 cents, or 1.1%, to $61.37, at 0650 GMT.
As of Monday, Brent and WTI had slumped 14% and 15% respectively following U.S. President Donald Trump’s April 2 announcement of "reciprocal tariffs" on all imports.
Oil prices recouped some of those losses in a relief rally aided by steadier equity markets, said Warren Patterson, head of commodities strategy at ING.
"The market has sold off heavily in recent days as it starts to price in a significant demand hit; however, how much of a demand hit we see is still very unclear," he said.
An ING note on Tuesday also said risks were still skewed to the downside due to U.S. President Donald Trump’s threats of an additional 50% tariff on Chinese goods if it did not lift its 34% retaliatory tariff by Tuesday.
Source : Reuters
