from Middle East Economy
Oil prices surged on Monday following U.S. President Donald Trump’s announcement of extensive tariffs on imports from Canada, China, and Mexico. The focus on oil prices increase is evident as these tariffs have sparked concerns regarding potential disruptions in oil supply chains, especially from Canada and Mexico, which are major crude suppliers to the U.S.
Tariffs raise concerns for oil supply
At 20:05 ET (01:05 GMT), Brent Oil Futures were 0.6 percent higher at $76.13 a barrel, while crude oil WTI futures expiring in March jumped 1.1 percent to $72.75 a barrel. The new tariffs, effective Tuesday, impose a 25 percent levy on goods from Canada and Mexico and a 10 percent tariff on imports from China. Notably, Canadian energy products were also among the targeted items, facing a 10 percent levy.
Impact on U.S. oil imports and refiners
The U.S. imports approximately 4 million barrels of Canadian oil and nearly 500,000 barrels of Mexican oil daily. The newly imposed tariffs are anticipated to drive up costs for U.S. refiners, particularly those located in the Midwest and Gulf Coast regions, which could result in higher fuel prices and potential production cuts.
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