Oil Drops on Trump's Tariff Delay on Canada and Mexico
Brent crude fell towards $75 a barrel, while West Texas Intermediate dipped below $72, erasing Monday's gains. President Donald Trump delayed tariffs on Canada and Mexico to combat migration and drug trafficking, while 10% levies on China remain, though Trump hinted at potential discussions.
"Oil market volatility reflects policy uncertainty under the Trump administration," said Charu Chanana of Saxo Markets. "Sentiment is driving prices, with tariffs significantly shaping direction."
Futures have been volatile, initially rising due to winter demand and Russian sanctions, but later declined on tariff threats. Concerns persist over China's sluggish manufacturing activity.
OPEC and allies maintained production plans, despite Trump's call for lower oil prices. Gradual increases are expected from April.