Crude oil and gasoline prices fell today from 3-week highs due to concerns over President Trump’s tariff policies impacting global economic growth and energy demand. The dollar index’s rally to a 2.5-week high also contributed to the decline in energy prices. President Trump’s announcement of 30% tariffs on US imports from the European Union and Mexico heightened trade tensions, further pressuring crude prices. However, there is support for crude prices as President Trump plans to make a significant statement regarding Russia, potentially imposing sanctions on Russian energy exports. China’s better-than-expected trade news positively impacts global energy demand and crude prices.

OPEC+ is considering pausing further production increases after September, given concerns about a slowdown in global oil demand that could lead to a supply glut. The International Energy Agency warns of a surplus in the global crude oil market by Q4-2025. Recent agreements by OPEC+ to increase crude production and Saudi Arabia’s intention to penalize overproducing members could lower oil prices. Middle East tensions, including attacks by Yemen’s Houthi rebels on merchant ships, support crude prices. A decrease in crude oil held on tankers and favorable EIA inventory reports contribute to bullish sentiment. Active US oil rigs have decreased to a new 3.75-year low, indicating a decline in drilling activity.

Read more at Yahoo Finance: Heightened Trade Tensions Weigh on Crude Oil Prices