Oil Prices Dip as Trump Unveils Energy Policies and Trade Tariffs
On Tuesday, oil prices declined following President Donald Trump's signing of executive orders aimed at boosting domestic production and potential tariffs on trade partners Canada and Mexico.
West Texas Intermediate (CL=F) dropped 2% to $76 per barrel, while Brent (BZ=F) fell over 1% to approximately $79.
On his first day in office, Trump declared a national energy emergency, expediting approvals for oil and gas development. He also signed an order to facilitate resource extraction in Alaska.
Trump's remarks regarding tariffs on Canada and Mexico have raised concerns of a trade war, potentially impacting economic growth and oil demand. "Retaliation is likely from U.S. trading partners if the White House were to implement tariffs," Goldman Sachs analysts stated on Tuesday.
Additionally, Trump withdrew the U.S. from the Paris climate agreement and plans to replenish the Strategic Petroleum Reserve, depleted during the Biden administration amid rising prices caused by the 2022 Russian invasion of Ukraine.
Oil prices have risen since the start of the year due to cold temperatures and expanded sanctions on Russian energy. WTI has gained over 6%, and Brent crude has increased by more than 5% year-to-date.