Crude oil rises after a US Court decision to block most of Trump's tariffs
Global oil markets witnessed a noticeable rise on Thursday, as crude prices jumped by more than 1%, supported by a US Court decision to halt most of the tariffs imposed by former President Donald Trump on imports from US trading partners.
The decision has restored some confidence to jittery markets, but it may be a temporary rebound amid threats of an appeal of the verdict and other geopolitical repercussions.
Details of the rise in prices
Benchmark Brent crude rose by 1.25% to USD 65.71 per barrel, while WTI jumped by 1.34% to USD 62.62 per barrel.
This rise came after a US trade court ruled that Trump exceeded his constitutional powers by imposing blanket tariffs on countries with a trade surplus with the United States, such as China, Mexico and Canada.
The impact of the judicial decision on the markets
Risk enhancement:
The decision restored confidence to investors after months of concern about the impact of tariffs on global trade and economic growth, as market participants saw that the US judiciary had put an end to a controversial trade policy.
Warnings of a temporary rebound:
Analysts warned that the rise may not last long, especially after the Trump administration announced its intention to appeal the ruling, which restores fears that the fees will return later.
Other factors affecting oil prices
Sanctions on Russian oil:
Markets are still watching the possibility of new US sanctions on Russian oil exports, which could reduce global supply and push prices up again.
The upcoming OPEC meeting:
Investors attention is turning to the OPEC alliance meeting on Saturday, where it is expected to announce a production increase of up to a thousand barrels per day starting in July, in an attempt to balance the market and counter rising summer demand.
Future forecasts
Despite the current rise, prices remain subject to sharp fluctuations due to:
Legal repercussions: the US administration's appeal may reimpose the duties and return the markets to the starting point.
OPEC moves: any sudden decision to increase or reduce production will directly affect prices.
Geopolitical factors: escalating tensions with Russia or changing global energy policies may create supply shocks.
