Oil Prices Dip Amid Trump's Executive Orders and Trade Concerns
Oil prices fell on Tuesday following President Donald Trump's executive orders designed to boost domestic production and his hint at tariffs on Canada and Mexico.
Price Movements
West Texas Intermediate (CL=F) dropped over 2% to close at $76.89 per barrel, while Brent (BZ=F) declined more than 1% to settle at $79.29.
Executive Orders
Trump declared a national energy emergency and signed an order expediting approvals for leasing and production of domestic oil and gas. He also targeted Alaska's resources with another executive order.
Trade Concerns
Trump expressed his intention to impose tariffs on Canada and Mexico starting February 1st, raising fears of a potential trade war. Analysts warn that retaliation from trading partners could impact economic growth and oil consumption.
Other Developments
Trump withdrew the US from the Paris Climate Agreement and announced plans to refill the Strategic Petroleum Reserve.
Market Outlook
Oil prices have been trending upward in 2023 due to cold temperatures and expanded sanctions against Russian energy. WTI has risen over 6% year-to-date, while Brent crude has gained more than 5%.