Oil Dips as Traders Weigh Tariff Impact and OPEC Meeting
Oil prices have declined as traders assess the potential impact of President Donald Trump's proposed tariffs on Canadian crude and other countries. The market is also awaiting news from an upcoming OPEC+ meeting regarding possible changes to U.S. energy policy.
West Texas Intermediate crude briefly dipped below $74 a barrel. OPEC+ is scheduled to discuss Trump's plans to increase oil production in the U.S. at its meeting on February 3, according to Kazakhstan's Energy Minister Almassadam Satkaliyev.
White House Press Secretary Karoline Leavitt confirmed that 25% tariffs on Canadian imports will take effect on February 1. A U.S. stockpile report revealed an increase of 3.46 million barrels last week, marking the largest weekly gain since October.
After an initial surge due to U.S. sanctions on Russia and cold weather, crude prices have faced downward pressure due to concerns about trade war impacts and weak economic data from China. President Trump has urged OPEC+ to lower crude prices, believing it will pressure Moscow to end the war in Ukraine.
"Crude prices continue to fluctuate in response to Trump's tariff policies, with the focus now on Canadian tariffs," said Ole Hansen, head of commodities strategy at Saxo Bank. Wednesday's price dip reflects a "bearish sentiment in an overall rangebound market," he added.