Oil Edges Higher as US Trade Policy Uncertainty Looms
West Texas Intermediate (WTI) crude futures rose towards $73 a barrel amid investor uncertainty over the Biden administration's impending trade policy changes.
Canada and Mexico May Avoid Tariffs
Howard Lutnick, nominee for Commerce Secretary, hinted that Canada and Mexico could potentially avoid tariffs if they address illegal migration and fentanyl concerns.
Bank of Canada Weighs Uncertainty
The Bank of Canada acknowledged the significant uncertainty surrounding US trade policy, citing the lack of clarity on potential consequences. Canada is a major oil exporter to the US.
Market Volatility
Oil prices have experienced volatility this year, initially rising on cold-weather demand and sanctions against Russia. Recent gains have been offset by Trump's pledge to boost domestic production and OPEC's efforts to lower prices.
Key Insights:
* US trade policy uncertainty is driving market fluctuations.
* Canada and Mexico face potential tariffs, but may negotiate exemptions.
* The Bank of Canada highlights uncertainty over US intentions.
* Oil prices have faced volatility due to geopolitical and production factors.