Oil Prices Rebound: Fuel Demand Boosts Optimism Amid Tariff Delays and Cautious Markets

After enduring a three-week decline, oil prices are showing signs of a rebound, driven by an uptick in fuel demand and a delay in potential U.S. tariffs. This unexpected change in tariff timelines has injected a bit of optimism into the market, providing traders with an opportunity to reassess their positions.

As of the latest trading session, Brent crude futures saw a rise of 44 cents, bringing the price to $75.46 per barrel, which is an increase of about 0.6%. Likewise, U.S. West Texas Intermediate (WTI) recorded a gain of 37 cents, now priced at $71.66 per barrel, reflecting an increase of 0.5%. Both oil benchmarks are on track to finish the week with approximate gains of 1%, which is a welcomed turnaround for traders who have grown weary of the recent downturn.

The pivot in market sentiment can largely be attributed to U.S. President Donald Trump's recent directive for commerce and economics officials to deliberate over reciprocal tariffs against nations imposing duties on American goods, with findings expected by April 1.

The prospect of an end to sanctions on Russia could unleash more oil into the global market, further complicating the recovery of oil prices. As the International Energy Agency reported a slight increase in Russian crude production, traders are understandably cautious, watching government discussions closely for any sign of a ceasefire that might return sanctions-dodging Russian oil to the fold.

On the demand side, figures are notable. Analysts at JPMorgan have highlighted a robust increase in global oil consumption, which now stands at 103.4 million barrels per day—a significant year-on-year uptick of 1.4 million bpd. As February unfolds, demand for mobility and heating fuels has markedly increased, signaling that the anticipated disparity between projected and actual demand may soon close.