Crude oil futures saw a positive uptick on Monday morning following a significant announcement from U.S. President Donald Trump regarding tariffs on steel and aluminum imports. At 9:56 AM, April Brent oil futures traded at $75.17 per barrel, marking a 0.68% increase, while March West Texas Intermediate (WTI) crude futures stood at $71.43, up 0.61%.
On the Multi Commodity Exchange (MCX), February crude oil futures were priced at ₹6,283 during the initial trading hours, up 0.74% from the previous close of ₹6,237. Similarly, March crude futures on MCX saw a rise, trading at ₹6,280, a 0.69% increase from the prior session’s close.
The price movements followed President Trump’s announcement on Sunday that a 25% tariff would be imposed on steel and aluminum imports to the U.S. Canada, Mexico, and Brazil are the largest exporters of steel to the U.S., followed by South Korea and Vietnam. These metals are crucial for the oil industry, playing a key role in the construction of pipelines, storage tanks, and other essential infrastructure. Analysts suggest that the tariffs could potentially disrupt the U.S. oil industry’s infrastructure and supply chains, leading to indirect effects on energy companies.
In other developments, China’s January inflation data, released by the National Bureau of Statistics, showed a modest increase in the annual inflation rate, rising to 0.5% from 0.1% in December. This growth was largely attributed to seasonal effects from the Lunar New Year festivities at the end of January. However, China’s producer price index (PPI) remained weak, posting a 2.3% year-on-year decline, consistent with December’s performance.
As one of the world’s largest consumers of crude oil, any signs of a slow recovery in China’s economy could dampen global demand for oil and other commodities.
Meanwhile, February natural gas futures on MCX surged by 2.14%, trading at ₹301.30, up from ₹295 in the previous session. Additionally, February guargum contracts on the National Commodities and Derivatives Exchange (NCDEX) saw a slight gain, trading at ₹10,020, up 0.47% from ₹9,973 at the previous close. On the other hand, March jeera futures declined by 0.84%, priced at ₹20,135 from ₹20,305 in the last session.
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