Oil Prices Drop as Trump Imposes Sanctions
Global oil prices declined after President Donald Trump imposed a series of sanctions and tariffs, raising concerns about the impact on the economy and trade.
Brent crude fell below $78 per barrel, while West Texas Intermediate traded near $74. The decline followed the US's imposition of tariffs and sanctions on Colombia after it denied landing rights to military planes carrying deported migrants.
The administration has also threatened sanctions against other nations, including Canada and China. However, oil prices remain elevated this year due to earlier US sanctions on Russian oil, which disrupted physical markets and forced Asian refiners to seek alternative supplies.
Colombia, the US's fourth-largest source of foreign oil, has retaliated with sanctions against US goods. The US Energy Information Administration reports that Colombia ships over 215,000 barrels per day to US ports.
Chris Weston, head of research at Pepperstone Group, believes Trump's actions are significant, indicating his willingness to use aggressive tariffs. The move could foreshadow similar actions against nations like Canada and Mexico.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies will hold a meeting next month, but delegates plan to maintain current plans for a gradual increase in production starting in April.