Oil prices surged after Trump imposed tariffs.

As reported by Ukrinform, this information comes from Reuters.

West Texas Intermediate crude oil futures in the U.S. traded at $73.89 per barrel, rising by $1.36, or 1.9%, after reaching a peak of $75.18 per barrel at the start of the session on January 24.

Brent crude oil futures increased by 67 cents, or 0.9%, to $76.34 per barrel after hitting a high of $77.34.

On Saturday, the U.S. president ordered tariffs on goods from Mexico, Canada, and China, initiating a trade war that could undermine global growth. Energy products from Canada will face only a 10% tariff, while Mexican energy imports will incur a full 25%, according to White House representatives.

“The relatively soft stance on Canadian energy imports is likely due to caution,” noted Barclays analyst Amarprit Singh. He stated that “tariffs on Canadian energy imports are likely to be more disruptive to domestic energy markets than those on Mexican imports, and could even be counterproductive to one of the president's key goals—reducing energy costs.”

Goldman Sachs analysts expect that the tariffs will have a limited short-term impact on global oil and gas prices. According to the U.S. Department of Energy, Canada and Mexico are the primary sources of crude oil imports to the U.S. Industry sources indicate that the tariffs will increase costs for heavier grades of crude oil, which U.S. refineries need for optimal production, leading to reduced profitability and potential cuts in production.

According to Saul Kavonik, an energy analyst at MST Marquee, tariffs are raising near-term oil prices due to supply disruption risks, especially for heavier grades. However, he added that oil prices may fall after the next quarter as tariffs lead to further deterioration in demand forecasts and as OPEC+ faces increasing pressure from Trump.

The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, are unlikely to change their existing plans for gradual production increases at their meeting on Monday, group delegates told Reuters, despite pressure from Trump.