Oil Fluctuates Amid US Trade Moves, Colombia Tariff Threats Paused
Brent and WTI crude prices experienced volatility as investors navigated the Trump administration's swift trade actions. The US initially threatened tariffs against Colombia before pausing them due to Bogota's compliance with US demands.
Crude prices remained elevated year-to-date, fueled by earlier US sanctions on Russian energy. Refiners in Asia have sought alternative supplies amidst rising physical prices.
Traders are adjusting to the evolving landscape of potential US trade penalties under President Trump's second term. The US has threatened action against China, Canada, Mexico, and the EU, while also requesting OPEC's assistance in lowering prices.
"Trump's actions indicate a clear credibility in deploying aggressive tariffs," said Chris Weston, research head at Pepperstone Group. "This provides momentum for Trump's pursuit of lower oil prices."
Colombia, a significant US oil supplier, initially threatened retaliatory sanctions before complying with US demands. The latest data reveals that Colombia exports over 215,000 barrels per day to US ports.