Prices for %CrudeOil remain under pressure as America’s stockpile rises and commodities traders brace for potential trade tariffs from U.S. President Donald Trump.
Trump has threatened to impose tariffs of up to 25% on Canadian and Mexican imports starting on Feb. 1, including energy imports that include oil and natural gas.
Brent crude oil, the international standard, is currently trading at $76.52 U.S. per barrel, down from more than $80 U.S. to start the year.
West Texas Intermediate (WTI) crude oil is trading at $72.53 U.S. a barrel, down about 2% over the past week.
Canada supplies nearly four million barrels per day (bpd) of crude oil to the U.S., roughly half of overall energy imports, while Mexico supplies 733,000 bpd, according to the Energy Information Administration (EIA).
Tariffs would almost certainly lead to higher prices at the gas pumps for Americans and could lead to chaos in energy markets, warn analysts and traders.
At the same time, U.S. crude oil stockpiles rose in recent days, data from the American Petroleum Institute shows.
In a recent speech, Trump demanded lower oil prices worldwide without providing any rationale or details to support his demand.
However, Trump’s comments and approach to international trade have stoked worries about an unpredictable geopolitical environment, say some analysts.
Saudi Arabia’s energy minister and several of his OPEC+ counterparts have held talks since Trump’s call for lower oil prices and ahead of a meeting next week of the oil cartel.
