Oil Prices Rise Despite Concerns Over Impact of US Tariffs on Global Demand

Oil prices witnessed an increase during trading on Friday, August 1, after dropping by over 1% in the previous session, amid traders' assessment of the potential repercussions of the new US tariffs, which could negatively affect economic activity and slow global demand for fuel.

According to market data, Brent crude futures rose by 0.3% to reach $71.88 per barrel, while US crude futures (West Texas Intermediate) increased by the same percentage, recording $69.47 per barrel.

On the other hand, crude oil is showing a significant weekly improvement, with Brent crude set to achieve gains of 4.9% during the current week, while West Texas Intermediate is expected to rise by 6.4%.

This increase comes after US President Donald Trump threatened to impose tariffs on buyers of Russian oil, especially China and India, in a move to increase pressure on Russia to end its war against Ukraine.

In a related context, Trump signed an executive order last Thursday imposing tariffs ranging from 10% to 41% on US imports from dozens of countries and regions, including Canada, India, and Taiwan, after negotiations failed to reach trade agreements before the deadline set on August 1.

However, investors' focus today is more on the new and higher tariffs imposed by the US administration on trading partners of the United States, which have come into effect today.

In this regard, some analysts have warned that these measures may put pressure on global economic growth by raising import costs, which in turn could impact global oil consumption levels.