Oil Little Changed as Traders Digest Trump Tariff Reprieve, Plan to Boost US Oil Output
Oil prices were little changed in Asian trading on Tuesday as investors took stock of President Donald Trump's plans to apply new tariffs later than expected while boosting oil and gas production in the U.S.
Brent crude futures edged lower by 1 cent, or 0.01%, to $80.14 per barrel by 0405 GMT.
The most actively traded West Texas Intermediate crude March contract dipped 60 cents, or 0.78%, to $76.79 a barrel. There was no settlement in the U.S. market on Monday due to a public holiday. The February contract expires on Tuesday.
"There are a lot of moving parts for markets to digest this morning, driven largely by headlines, which is a hallmark of a Trump 2.0 era," said Yeap Jun Rong, market strategist at IG.
"The initial sense of relief that trade measures weren't an immediate focus on Trump's 'day one' was quickly offset by reports of 25% tariffs on Mexico and Canada as early as February, which saw risk sentiments turn."
Trump did not impose any sweeping new trade measures right after his inauguration on Monday, but told federal agencies to investigate unfair trade practices by other countries.
He said he was thinking of imposing 25% tariffs on imports from Canada and Mexico from Feb. 1, rather than on his first day in office as previously promised.
The tariff reprieve initially helped push oil prices down, but duties on Canadian crude could eventually drive the market higher.
Source : Reuters
