Trump fees pay oil prices to the highest level in 6 weeks

Oil prices rose to the highest level in 6 weeks, after US President Donald Trump confirmed his plans to impose customs definitions on the largest suppliers of crude oil to the United States. Brent ruol increased the April delivery by 2.1% to close at $ 74.04, while the crude contracts in Western Texas rose by about 2.5% to exceed $ 70 a barrel, after Trump posted on social media, that the proposed definitions on Canada and Mexico came into effect on March 4th. US crude oil, to replace Canadian or Mexican barrels that can be directed at other markets to avoid customs duties. However, the effects of definitions may be limited because many US refineries are designed to treat heavy oil from Canada and Mexico, not locally produced oil, which complicates the replacement of these supplies. The United States exports about 4 million barrels per day from Canada, and about 400,000 barrels per day from Mexico. Commercial tension sheds a shadow of oil prices, despite the profits achieved on Thursday, oil prices are still on their way to the biggest monthly loss since September, as the fear of commercial wars affects economic growth expectations and the demand for energy in the United States and China, which is the largest oil consumers in the world. Oil prices have been closed at the lowest level since December 10, amid conflicting statements from the White House over the customs tariffs being studied. Trump confirmed on Thursday that China will undergo an additional rate of 10% from March 4. “There is still a great ambiguity about the impact of the political and economic agenda of Donald Trump on growth,” says Tamas Fragha, a PVM oil association. He added: “The mutual definitions, and reducing tax and expenses, can increase inflationary pressure and negatively affect economic prosperity.” Indications on the return of some oil supplies There are signs of resumption of oil flow in some areas, where Iraq, a member of the ‘organization of oil exporting countries’ (OPEC), announced an agreement with the Kurdistan region to resume the oil export by the closed pipeline for almost two years without specifying an accurate time frame. It has been announced several times that this line has been restarted, without really doing it. In another context, Trump announced that Ukrainian President Voludeimir Zellinski will visit the United States on Friday, at the time of Washington, continuing the discussions to end the three -year war, a possible transformation that could lead to a reduction in the sanctions that were focused on the Russian oil. There are still risks to supply, including renewed US efforts to reduce Iranian and Venezuelan oil exports, in addition to the expectation that the “OPEC+” alliance will again postpone its gradual plan to increase production.