Oil Prices Fall on Trump's Production Unleashing, Tariffs Hint
Oil prices declined on Tuesday following President Donald Trump's executive orders focused on boosting U.S. production and his suggestion of imposing tariffs on Canada and Mexico.
West Texas Intermediate and Brent Prices Tumble
West Texas Intermediate (CL=F) plummeted over 2%, closing at $76.89 per barrel. Brent crude (BZ=F) also dipped more than 1%, settling at $79.29.
Trump Declares National Energy Emergency, Expedites Alaska Projects
On his first day in office, President Trump declared an energy emergency, facilitating quicker approvals for oil and gas leasing, production, and more. He also signed an order expediting permitting and leasing in Alaska.
Tariffs on Canada and Mexico Spark Trade War Fears
Trump's намерение ввести пошлины на Канаду и Мексику с 1 февраля вызвало опасения о торговой войне, которая может повлиять на экономический рост и, как следствие, на потребление нефти.
US Withdraws from Paris Climate Agreement, Plans SPR Replenishment
On Tuesday, Trump also withdrew the U.S. from the Paris Climate Agreement and expressed his intention to replenish the Strategic Petroleum Reserve, which was depleted under the Biden administration.
Upward Trend Reversed Amidst Production and Tariff Concerns
Oil prices had been trending upwards due to cold temperatures in the Northern Hemisphere and new sanctions on Russian energy. However, President Trump's actions have reversed this trend.