Crude Oil Price: Crude oil prices rise after three days fall, know what is the reason

Due to the possibility of tariff war, crude oil prices continuously falling in the last three trading sessions are now seen in recovery mode. In the international market on Tuesday, Brent crude is trading about $ 65 per barrel with a gain of about 1.5%. At the same time, WTI crude is also getting stronger.

Crude reached a four -year low on Monday

Crude prices fell 2% on Monday due to Trump’s new tariff alert and Brent crude reached a four -year low. The US has warned to impose an import tariff of up to 50% on China. China is the world’s largest crude oil importer, and if this trade war increases, it can affect the entire global economy.

Trade war increases the risk of recession

Market experts say that if China puts a reciprocal tariffs in response to tariffs, then the total tariff rate on the import of China in the US in the US can reach 104%. This can cause a decline in the global stock market, decline in risk sentiments and intensity of economic slide.

Banks reduced oil estimates

Due to trade tension, big banks like Goldman Sachs, Morgan Stanley and Society General have reduced the price of crude for the coming months. They believe that if the tariffs grow more then there will be pressure on both the economy and global demand of China.

Production in US may slow down

Analysts say that the breakeven point of oil production in the US is around $ 60 per barrel. If crude prices go down more, oil companies can reduce production. This can create a price floor for WTI that can be around $ 50 per barrel. Currently Brent crude rose by 1.26% to $ 65.02 per barrel and WTI crude gains 1.52% to $ 61.61 per barrel.

This edge indicates that even though there is pressure on global demand, prices can now be stable gradually. However, if the tension of trade war and tariff persists, then crude will continue to fluctuate.