FX.co ★ Oil Rises on Hopes of More Tariff Exemptions

On Tuesday, West Texas Intermediate (WTI) crude oil futures climbed to approximately $61.8 per barrel, following signals from President Donald Trump about a potential new tariff exemption. Trump announced on Monday that he is considering a temporary alleviation of the 25% tariffs impacting the automotive sector to allow car manufacturers time to adjust their supply networks. This announcement comes after he recently granted temporary exemptions for certain technology products. Additional upward pressure on oil prices was driven by a significant resurgence in China’s crude imports during March. However, these gains might be constrained by OPEC+’s revised demand growth forecasts for 2025 and 2026. The organization cited uncertainties stemming from the ongoing trade conflict and underwhelming economic indicators, now projecting an increase in demand of 1.3 million barrels per day (bpd) in 2025 and 1.28 million bpd in 2026, down from previous projections of 1.45 million and 1.43 million bpd, respectively. Concurrently, talks over the weekend between the United States and Iran regarding the nuclear issue, described by both parties as constructive, have elevated the likelihood of increased oil exports from Iran.