Oil Falls as Trump Holds Off on Tariffs, Vows to Boost Output
Oil slid as US President Donald Trump promised to boost US crude production while holding off on tariffs that could have restricted supplies and hurt demand.
Brent crude retreated more than 1% to near $80 a barrel. Trump won’t unveil tariffs against China, Canada or Mexico on his first day in office and will instead call for federal agencies to study policies and the US’s trade relationships with those nations.
Traders had been monitoring the risk of disruption to Canadian supplies — the largest source of US imports — after Trump previously signaled to Alberta’s premier that oil wouldn’t be exempted in any tariffs. Wider markets found some support from the lack of measures.
Still, Trump said he will unleash a barrage of executive orders on his first day, including invoking emergency powers in the hours after he’s sworn in as part of his plan to unleash domestic energy production.
Crude has rallied at the start of the year after frigid weather in the Northern Hemisphere drove up heating demand and broader US sanctions on Russia’s oil industry left customers in Asia seeking alternative supplies. A fresh bout of cold weather in the US was disrupting supplies on Monday.
Brent for March settlement was 1.1% lower at $79.92 a barrel as of 5:38 p.m. in London. WTI for February delivery, which expires on Tuesday, slid 1.7% to $76.58 a barrel.
Source: Bloomberg
