Oil prices climbed nearly 2% on Monday following three consecutive weeks of losses, despite lingering concerns over a potential trade war initiated by U.S. President Donald Trump. Brent crude settled at $75.87 per barrel, up $1.21 (1.6%), while WTI rose to $72.32 per barrel, gaining $1.32 (1.9%). This rebound comes after a 2.8% drop last week, driven by fears over global trade tensions.
Market sentiment remains focused on Trump’s anticipated executive order on tariffs, which could escalate trade disputes. Analysts suggest that investors may be buying the dip, recognizing the ongoing volatility of tariff-related headlines. China’s retaliatory tariffs on U.S. exports took effect Monday, further clouding global economic and energy demand prospects.
Supply concerns also supported prices. Russia’s Federal Antimonopoly Service is considering a one-month gasoline export ban to stabilize domestic prices, which could tighten global supply. Additionally, U.S. sanctions on Iran and Russia continue to disrupt oil flows, impacting shipments to China and India. Geopolitical tensions remain in focus, with Washington increasing pressure on Iran through additional sanctions, while U.S.-Russia negotiations over the Ukraine war show little progress. Analysts warn that these sanctions are contributing to a tighter oil market, alongside rising natural gas prices, which are boosting demand for alternative fuels.
Meanwhile, early U.S. inventory data suggests that crude and gasoline stockpiles likely rose last week, while distillate inventories declined, according to a preliminary Reuters poll.