Oil prices jumped on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of crude supply disruption from the two biggest suppliers to the U.S., but the prospect of lower fuel demand capped gains.
U.S. West Texas Intermediate crude futures were at $73.89 a barrel, up $1.36, or 1.9%, by 0443 GMT, after hitting its highest since Jan. 24 at $75.18 a barrel earlier in the session.
Brent crude futures rose 67 cents, or 0.9%, to $76.34 a barrel, after touching a high of $77.34.
Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, kicking off a trade war that could dent global growth and reignite inflation.
Energy products from Canada will have only a 10% duty, but Mexican energy imports will be charged the full 25%, White House officials said.
“The relatively soft stance on Canadian energy imports is likely rooted in caution,” Barclays analyst Amarpreet Singh said in a note.
