Oil prices have climbed despite ongoing uncertainties in the commodities market, driven by fears over the global economic impact of tariffs, a potential US recession, and OPEC+ plans to boost output.
Brent crude, the international benchmark, rose 0.5% to $69.32 per barrel, up from its previous close of $68.97. Meanwhile, US benchmark West Texas Intermediate (WTI) increased by 0.48%, reaching $65.98 per barrel from $65.66 in the prior session.
Persistent inflation and recession concerns continue to weigh on global markets, with US President Donald Trump’s tariff policies adding to economic uncertainty. His recent comments on tariffs have further fueled fears of a potential recession. In a Sunday interview, Trump did not rule out the possibility that tariffs could slow the US economy or contribute to rising inflation this year.
When asked about a possible recession due to tariffs, Trump avoided making a direct prediction but described the situation as a “period of transition,” emphasizing that his policies aim to bring wealth back to America. He also acknowledged inflation concerns, noting that tariffs could have an impact but pointing out that interest rates have fallen.
“Trump’s remarks triggered a sell-off as investors began pricing in the risk of weaker demand growth,” said Daniel Hynes, a commodity strategist at the Australia and New Zealand Banking Group.
Market sentiment was further dampened by economic data from China, which revealed a larger-than-expected decline in consumer inflation. “The drop in service prices and a negative reading for core inflation reflect sluggish consumption,” Hynes added. The uncertainty surrounding US trade policies is set to intensify as a 25% tariff on all steel and aluminum imports takes effect on March 12.
In response, Ontario Premier Doug Ford announced that Canada’s most populous province will impose a 25% surcharge on electricity supplied to US states.
On the supply side, OPEC and its allies, known as OPEC+, are preparing to increase oil production from April. However, Russian Deputy Prime Minister Alexander Novak stated on Friday that they are ready to adjust their approach if market imbalances arise.
Experts warn that a combination of slowing demand and rising supply could significantly impact oil prices in the coming months.
