Oil prices jumped Monday after President Donald Trump’s sweeping tariffs on Mexico, Canada, and China fueled fears of crude supply disruptions from two of the U.S.’s largest oil suppliers.
West Texas Intermediate crude rose 1.88% to $73.89 per barrel, while Brent crude climbed 0.96% to $76.40. U.S. gasoline futures also surged 2.66%, reflecting market jitters.
While Canadian energy imports face only a 10% tariff, Mexican crude will be hit with the full 25% duty. Analysts warn this could impact refineries reliant on heavier crude grades, increasing costs and potentially forcing production cuts.
“The tariffs could disrupt supply in the short term, but the broader economic slowdown they trigger may curb long-term demand,” said Saul Kavonic of MST Marquee.
Goldman Sachs downplayed the immediate impact, while industry experts expect pressure on OPEC+ to counterbalance potential disruptions. As the trade war escalates, energy markets brace for volatility.
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