An oil pumpjack is seen in a field on April 08, 2025 in Nolan, Texas.
Brandon Bell | Getty Images
U.S. crude oil futures jumped more than 4% on Wednesday, booking its best day since October of 2024 after President Donald Trump announced a lower tariff rate for countries except China.
The U.S. benchmark rose $2.77, or 4.65%, to close at $62.35 per barrel, while global benchmark Brent was up $2.55, or 4.06%, to $65.37 per barrel.
U.S. crude hit an intraday low of $55.12 earlier in the session after Beijing announced tariffs of 84% on U.S. goods in response to Trump’s levies. China’s tariffs take effect on April 10.
But the oil market turned around, swinging more than 13% from its low after Trump dramatically reversed course on his trade war. The president said lower tariff rates of 10% would apply to countries for 90 days with exception of China. He increased rates on China to 125% effective immediately.
Traders have been worried the world is descending into a full-blown trade war that will trigger a recession, hitting crude oil demand. OPEC+, meanwhile, has agreed to accelerate output in May, which will bring more oil to a market that was already facing a surplus.
The collision of recession fears and growing oil supply is a “toxic cocktail,” Helima Croft, global head of commodity strategy at RBC Capital Markets, told CNBC on Tuesday.
The U.S. and Iran are scheduled to hold talks in Oman on Saturday to discuss the Islamic Republic’s nuclear program. Successful negotiations could result in more Iranian oil entering the global market.
