From Yahoo Finance: 2025-04-01 20:56:00

Oil prices initially rose but then fell into negative territory after U.S. President Trump announced reciprocal tariffs on trading partners, sparking fears of a global trade war impacting crude demand. Futures settled higher, but turned negative during Trump’s press conference. Trump’s tariff policies could stoke inflation and limit economic growth, impacting oil prices.

Trump’s announcement included tariffs on the EU, China, and South Korea, but not Canada and Mexico. USMCA-compliant goods, including oil, from Mexico and Canada remain exempt. Canadian crude oil exports to the US are around 4 million barrels per day. Trump also threatened secondary tariffs on Russian oil and toughened sanctions on Iran.

Russia, the second-largest oil exporter, placed restrictions on major oil export routes, affecting global supply. Russian ports also ship oil from Kazakhstan. Investors shrugged off bearish US government crude inventory data showing a large build of 6.2 million barrels last week. The market viewed the data as neutral, driven by a rise in Canadian crude imports ahead of tariff fears.

Read more: Oil prices fall into negative territory as Trump announces new tariffs