Crude oil prices climbed on Monday in international markets, spurred by a rebound in China’s oil imports and investor reactions to mixed signals surrounding U.S. tariff policies. Market analysts suggest that the renewed demand from China may help counterbalance the expected increase in supply from the OPEC+ alliance set for May.
China’s crude oil imports in March saw a notable upturn following a dip in the previous two months, rising by about 5% over the same period last year, according to official customs figures made public on Monday. A significant increase in imports from Iran and a rebound in shipments from Russia helped to support the growth.
The total volume of Crude Oil brought into China reached 51.41 million metric tons in March, which translates to approximately 12.1 million barrels per day. As a result, both Brent crude and US West Texas Intermediate (WTI) climbed 0.3%, with prices at $64.95 and $61.66 per barrel, respectively.
This uptick in Chinese imports has reinforced optimism that the nation’s economy is regaining momentum. Investors are now closely monitoring the upcoming release of key economic indicators expected later this week.
In parallel, developments concerning the ongoing US-China trade tensions showed slight signs of improvement. On Friday, the US Customs and Border Protection agency issued a notice that suggested a potential exemption for certain electronic products from the 145% tariffs imposed on Chinese goods. This move sparked hopes that consumer electronics may avoid the broader scope of tariff measures.
However, on Sunday, Commerce Secretary Howard Lutnick sought to clarify the situation, stating that electronics had not been permanently exempted. Instead, he indicated that these items would soon be subject to new tariffs specifically targeting semiconductors, expected to be implemented in the next one or two months as part of a broader trade framework.
Additionally, US President Donald Trump took to his Truth Social platform to refute claims that exemptions had been granted for items such as smartphones and computer chips. He emphasized that these products remain under the current 20% fentanyl-related tariffs and are simply being reclassified into a different tariff category.
Oil markets had previously dipped in reaction to President Trump’s unexpected announcement last week regarding tariff increases targeting key trading partners. However, a subsequent decision to delay the implementation of those levies for 90 days—excluding China—sparked a market recovery.
“The market has been caught in a tug-of-war due to the abrupt changes in US trade policy, leading to volatile price movements throughout the week. However, the lingering uncertainty is likely to persist,” noted Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group, in a research note.
Meanwhile, the US dollar index, which tracks the performance of the greenback against a basket of foreign currencies, declined to 99.014—marking its lowest level in approximately three years. The weakening dollar has provided an incentive for oil-importing nations to purchase crude at more favorable rates, further contributing to the uptick in oil prices.
Data released by Baker Hughes on Friday indicated that the number of active oil rigs in the United States fell by nine during the week, bringing the total to 480 rigs as of April 11. The count, which serves as a key gauge of short-term domestic production, is 26 rigs lower compared to the same period last year.
As of the closing of trading on Friday, Brent crude was priced at $64.76 per barrel, while the American WTI benchmark was at $61.50 per barrel.
