Oil Prices Jump amid Rising Concerns over Impact of US Tariffs

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After declining more than 1% in the previous session, oil prices returned to rising, as investors try to assess the implications of new US tariffs. These high tariffs have raised market concerns about slowing global economic activity, which could lead to declining demand for energy and fuel.

Despite these concerns, the market appears to be gradually absorbing the shock, with investors awaiting any indicators that may reveal the actual scale of impact on global growth and oil consumption.

Oil Prices and Futures Contracts

Oil prices registered slight gains during Friday’s trading, reinforcing their weekly gains amid rising tension in global markets. Futures contracts for “Brent” crude for September delivery rose 0.3%, or 20 cents, to reach $71.90 per barrel.

As for US “NYMEX” crude, it recorded gains of 0.25%, equivalent to 18 cents, reaching $69.44 per barrel.

Trump’s Tariffs

Estimates show that “Brent” crude is heading to end the week with gains estimated at around 4.9%, while US crude is expected to end trading with weekly gains of approximately 6.4%. These gains come against the backdrop of sharp statements by US President Donald Trump, who threatened this week to impose tariffs on Russian oil importers, especially Trump’s tariffs on China and India, which ignited geopolitical tension that was directly reflected in the markets, according to “Reuters” agency.

In another development, Trump signed an executive order on Thursday imposing tariffs ranging between 10% and 41% on US imports from dozens of countries, including Canada, India, and Taiwan, after their failure to reach trade agreements before the deadline set for August 1st.

Attention now turns to data on the number of US drilling rigs for oil and gas, to be released later today by “Baker Hughes” company, given its direct impact on assessing future supplies from the United States.