The oil market rebounded on Monday despite lingering fears over a potential global trade war, with Brent crude futures gaining 87 cents or 1.2 per cent to trade at $75.53 a barrel and the US. West Texas Intermediate (WTI) crude futures expanding by 90 cents or 1.3 per cent to $71.90 per barrel.
The market weighed US President Donald Trump’s latest tariff plans, which targets steel and aluminium.
Mr Trump announce a 25 per cent tariffs on all steel and aluminium imports into the United States.
This follows tariffs on Canada, Mexico and China announced a week ago, but suspended those for the neighbouring countries the next day.
China’s retaliatory tariffs on some US exports took effect on Monday, with no sign yet of progress in talks between the two economic powerhouses.
Market analysts noted that tariffs could dampen global economic growth and energy demand.
However, in light of Trump’s temporary backdown last week, investors appeared to be shrugging off the steel and aluminium tariff threat.
He has also restored the maximum pressure campaign on Iran, aiming to drive down the Islamic Republic’s oil exports to zero.
The US Treasury last Thursday sanctioned an international network for facilitating the shipment of millions of barrels of Iranian crude oil worth hundreds of millions of Dollars to China.
Meanwhile, the American president has also signaled a willingness to negotiate a new nuclear deal with Iran that would allow it to peacefully grow and prosper—without obtaining a nuclear weapon.
President Trump also said on Sunday that the US is making progress with Russia to end the Ukraine war, with Russia making listing that some conditions must be met in full before the war can end.
Sanctions imposed on Russian oil trade in January disrupted the country’s supplies to its top clients, China and India, then tightening the market.
The market will be looking forward to inventory data from the American Petroleum Institute (API) due later on Tuesday, while the official data from the US Energy Information Administration (EIA) will be due later on Wednesday.