Oil Slides as Trump Vows Emergency Measures, Withholds China Tariffs
West Texas Intermediate (WTI) futures for March delivery extended losses, hovering around $76 per barrel. Brent crude also retreated, settling near $80.
President Donald Trump refrained from imposing China-specific tariffs on day one of his presidency, opting instead to address unfair trade practices globally. However, he left open the possibility of tariffs on Canada and Mexico.
Trump pledged to replenish the U.S. strategic oil reserve and roll back Biden-era climate change policies. He also signed an executive order to withdraw from the Paris Climate Agreement.
Despite a strong start to the year driven by cold weather and U.S. sanctions on Russia, oil prices could face near-term correction due to Trump's ambiguous stance on tariffs and sanctions, according to Westpac Banking Corp.
Robert Rennie, head of commodity and carbon research at Westpac, anticipates increased American oil production further pressuring prices.
Meanwhile, the Yemen-based Houthis announced a halt to attacks on U.S. and UK ships in the Red Sea, following an Israel-Hamas ceasefire. Their year-long campaign had disrupted global trade.