The Dollar Index futures, which tracks the performance of the U.S. dollar against a basket of six major currencies, recorded losses of 0.31 percent to trade at 108.54 dollars.
On the New York Mercantile Exchange, March oil futures were traded at delivery for 72.42 dollars per barrel at the time of writing, rising 1.01 percent.
According to analysts, new tariffs on energy imports may raise gasoline prices but should not drastically impact oil in the long term.
Despite the protectionist stance of United States President Donald Trump, oil price projections remain unchanged, with Canada being the most pressured country.
Technical analysis indicates the continuation of the downward trend for oil, with key resistance and support levels determining the next movements.
Oil prices opened the week higher in Asia, while index futures and major currency pairs recorded falls, reacting to U.S. President Donald Trump’s announcement of new tariffs against Canada, Mexico, and China. Trump also warned that tariffs on European products are on the way.
This is the most comprehensive protectionist measure adopted by a U.S. President in recent times. If an agreement is not reached between the U.S. and its trading partners, the impacts on inflation, geopolitics, and economic growth could be extensive.
In the oil market, the effects should be evaluated from both the supply and demand sides. Considering all factors, the net impact on oil prices tends to be limited.
Tariffs shake markets
The new tariffs, which went into effect yesterday, include a 25 percent tax on most products imported from Mexico and Canada, plus a 10 percent tariff on energy imports from these countries and China.
Due to the strong integration of the North American oil market, these tariffs may lead to an increase in U.S. gasoline prices as refineries face higher costs.
