Oil Prices Dip on Trump's Production Expansion and Trade War Fears
Oil prices declined on Tuesday following President Donald Trump's executive orders to boost domestic energy production. Trump's plan includes emergency approvals for domestic oil and gas leasing, production, and transportation.
West Texas Intermediate (WTI) dropped over 2% to $76.89 per barrel, while Brent declined by more than 1% to $79.29.
Trump also hinted at potential tariffs on Canada and Mexico, sparking concerns about a trade war. Analysts warn that retaliatory tariffs could impact economic growth and subsequently reduce oil consumption.
Additionally, Trump withdrew the U.S. from the Paris Climate Agreement and announced plans to replenish the Strategic Petroleum Reserve.
Despite these announcements, oil prices have shown an upward trend this year, attributed to cold weather in the Northern Hemisphere and increased sanctions on Russian energy. WTI has risen over 6% year-to-date, while Brent has gained more than 5%.