Oil Slips as Trump Prioritizes Domestic Production over Trade Restrictions
Brent crude prices declined nearly 1% to approach $80 per barrel following President Donald Trump's pledge to boost domestic oil production. Trump announced plans to defer tariffs against China, Canada, and Mexico, opting instead for a study of trade policies and relationships.
The market had been closely monitoring potential supply disruptions from Canada, the primary source of U.S. crude imports, after earlier indications from Trump suggested oil would not be exempt from tariffs.
Despite the absence of immediate trade measures, the lack of disruption has provided some market support. However, Trump has vowed to issue executive orders on his first day in office, including the immediate invocation of emergency powers to accelerate domestic energy production.
Crude prices had risen significantly at the beginning of the year due to increased heating demand in the Northern Hemisphere and the impact of U.S. sanctions on Russia's oil industry. A new cold snap in the U.S. is further disrupting supply.
Trump's nominee for Treasury Secretary, Scott Bessent, has expressed support for intensifying measures against Russia's oil industry, potentially leading to further supply disturbances. The President's pick for National Security Adviser has also pledged "maximum pressure" on Iran.