Oil Prices Dip Amid Trade War Fears Following Trump's Executive Orders
Global oil prices declined on Tuesday following the signing of executive orders by US President Donald Trump. The orders aimed to boost domestic production and hinted at potential tariffs on trading partners Canada and Mexico, raising concerns about a trade war.
West Texas Intermediate (CL=F) fell over 2% to settle at $76.89 per barrel, while Brent (BZ=F) also dropped more than 1% to $79.29.
Trump's orders include declaring a national energy emergency, expediting approvals for oil and gas projects in Alaska, and withdrawing the US from the Paris Climate Agreement. He also mentioned his intention to impose tariffs on Canada and Mexico.
Analysts at Goldman Sachs expressed concerns that retaliatory measures from trading partners could result in a trade war, impacting economic growth and oil consumption.
Despite the recent decline in prices, oil remains higher than the start of the year due to cold weather in the Northern Hemisphere and sanctions against Russian energy. WTI has gained over 6% year-to-date, with Brent crude up more than 5% during the same period.