Oil prices fall as traders digest Trump tariff suspension
Oil prices fell on Tuesday as investors digested U.S. President Donald Trump’s slower-than-expected plan to impose new tariffs while increasing U.S. oil and gas production.
Brent crude futures were down 65 cents, or 0.81%, at $79.50 a barrel by 0909 GMT. U.S. West Texas Intermediate crude futures were down $1.15, or 1.48%, at $76.73. There was no settlement in U.S. markets on Monday due to a public holiday.
“Initial relief that trade measures were not an immediate focus on Trump’s ‘Day 1’ was quickly offset by reports of 25% tariffs on Mexico and Canada in early February, which caused risk sentiment to shift,” said Yeap Jun Rong, market strategist at IG.
Trump did not impose sweeping new trade measures after his inauguration on Monday, but he did order federal agencies to investigate unfair trade practices by other countries.
He said he was considering imposing 25% tariffs on imports from Canada and Mexico starting Feb. 1, rather than on his first day in office as previously promised.
The tariff suspension initially helped pressure oil prices, but duties on Canadian crude could eventually push prices higher.
Source: Investing.com
