U.S. Crude Oil Sees Significant Increase After Trump's Tariff Exemptions on Tech

U.S. crude oil prices experienced an upward shift of over 1% this Monday. This surge came following a decision by President Donald Trump to exempt items such as smartphones and computers from hefty tariffs that were initially intended for imports from China.

The price of crude oil increased by 90 cents, marking a rise of 1.46%, reaching $62.40 per barrel. Meanwhile, the international benchmark observed an increment of 88 cents, showing a 1.36% increase, culminating at $65.64 per barrel.

While imposing 145% tariffs on China, President Trump simultaneously announced a temporary halt on levies for the majority of other nations. This pause, lasting 90 days, aims to facilitate negotiations.

Further backing for oil prices was noted following U.S. Energy Secretary Chris Wright's statement on Friday. Wright mentioned the possibility of the U.S. halting Iran's oil exports should there be no resolution over Iran's nuclear pursuits. U.S. and Iranian representatives engaged in discussions in Oman on Saturday and intend to convene again on April 19.

Despite these developments, oil prices remain approximately 13% lower from April 2, the date when Trump revealed his expansive tariff strategy, amid burgeoning fears of an impending recession.

Goldman Sachs forecasts that the prices for West Texas Intermediate and Brent will average around $59 and $63 per barrel respectively for the remainder of the year, as per a note released on Sunday.