Oil Hits 6-Month Low. Where to From Here

Oil Prices Rebound as Markets Assess Demand Outlook Amid Tariff Uncertainty

Some market analysts are revising their price forecasts. Morgan Stanley has lowered its Brent crude price expectations for the remainder of the year, now predicting the benchmark will trade around $60 per barrel in the second half of the year. Meanwhile, US crude oil inventories rose by 3.61 million barrels last week, reaching the highest level since July 2024, according to the Energy Information Administration. This contrasts with the expected decline forecasted by the industry-funded American Petroleum Institute.

Trump is still moving forward with reciprocal tariffs on April 2, despite retaliatory measures from China and Canada against US goods.

Oil prices are rising after hitting their lowest closing level in six months, as the market attempts to gauge the uncertain demand outlook following President Donald Trump’s broad-ranging tariffs on key US trading partners.

Brent crude is climbing toward $70 per barrel after losing more than 6% over the past four sessions, while West Texas Intermediate (WTI) remains near $67.

Although Trump has delayed some tariffs on automakers and is considering exemptions for certain agricultural products, he remains committed to implementing reciprocal tariffs on April 2.

Refineries on the US Gulf Coast are placing fewer crude oil orders from Mexico, which is set to announce its response to Trump’s tariffs on Sunday.

Meanwhile, Canada’s Alberta province is moving forward with plans to build pipelines to the coast to increase oil exports to Asia and Europe, according to the province’s premier.