A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
Crude oil futures rose more than 1% on Tuesday, after booking steep losses on fears that President Donald Trump’s sweeping tariffs will trigger a full-blown, global trade war.
U.S. crude oil was last up 75 cents, or 1.24%, to $61.45 per barrel, while global benchmark Brent rose 69 cents, or 1.07%, to $64.90 per barrel.
The oil market is “taking a big of a breather” after getting hit by a “toxic cocktail” of recession fears due to Trump’s tariffs and the decision by OPEC+ to bring more barrels back to the market, said Helima Croft, global head of commodity strategy at RBC Capital Markets.
“For now people are waiting to see if there’s a potential off ramp to this trade dispute,” Croft told CNBC’s “Squawk on the Street.” Traders will also monitor the upcoming OPEC+ meeting on May 5, she said.
West Texas Intermediate hit a session low of $58.95 per barrel on Monday, the first time the benchmark has fallen below $60 per barrel in four years. U.S. crude oil is down more than 13% and Brent has fallen about 13% since last Wednesday when Trump announced his tariffs.
China has vowed to fight Trump’s tariffs to the end. Beijing has announced 34% tariffs on U.S. goods starting April 10. Trump subsequently threatened additional 50% levies on Chinese goods if Beijing moves forward with retaliation.
Treasury Secretary Scott Bessent on Monday told CNBC that China was playing a losing hand.
“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent said during an interview on CNBC’s “Squawk Box.” “What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”
