Oil prices rise as Donald Trump eases tariff policy

Oil prices are trending higher on Tuesday, Reuters reports. This growth is supported by new trade exemptions announced by US President Donald Trump, as well as an increase in imports of the commodity to China amid expected tighter supply from Iran.

The US leader granted exemptions from tariffs on electronics and announced a possible reduction in duties on imported cars. Both of these decisions are seen as a retreat from previously announced trade measures, giving some relief to risk assets, including oil, independent analyst Tina Teng says.

In addition, the US Department of Energy announced that it would likely cut off oil supplies to Iran in response to Tehran's nuclear program. Moreover, Chinese crude imports in March increased by almost 5% compared to the same month last year, also supporting commodity prices.

However, Teng expresses doubts about the sustainability of the current oil price growth, pointing to Trump's unpredictable actions as the reason for her skepticism. The volatile policy of the US administration has already made OPEC downgrade its oil demand forecast.