Oil prices bounced back on Tuesday, rising over 1% after recent steep declines sparked by fears that US tariffs could slow global demand and trigger a recession.
Brent crude climbed 1.26% to $65.02 per barrel, while US West Texas Intermediate rose 1.52% to $61.61. This follows a 2% drop on Monday that brought prices near a four-year low.
Concerns remain over President Trump’s sweeping tariffs — starting at 10% and going up to 50% — which he claims will revive US industry. China has vowed to retaliate, raising fears of escalating trade tensions.
Analysts warn that if tariffs reach 104% on Chinese imports, global market sentiment could deteriorate further, pushing economies closer to recession.
US crude inventories are expected to rise, signaling weak demand. However, with break-even production costs near $60 per barrel, analysts believe oil prices may stabilize in the $50s as US output slows.