Oil Prices Rise as Tariffs Threaten North American Energy Trade

Oil prices rose significantly with Brent crude up 1.7% to $76.95 and WTI climbing 2.6% to $74.42 as Trump’s tariffs threatened to disrupt North American energy trade.

While Canadian energy faces lower 10% tariffs compared to 25% on other goods, analysts expect U.S. gasoline prices to rise as refineries face higher costs for heavy crude imports.

Barclays notes the relatively softer stance on Canadian energy likely reflects concerns about domestic market stability, but Rystad Energy warns of inevitable gasoline price increases as refineries face higher costs for heavy crude grades.

The situation could benefit OPEC+ if prolonged tariffs lead to production cuts in North America, potentially helping the producer group unwind its output restrictions. Meanwhile, U.S. gasoline futures surged 2.5% to $2.11 per gallon as markets priced in expected supply constraints.