CommoditiesConstruction

Oil Prices Dip as Investors Weigh Trump’s Potential Tariffs on Canadian and Mexican Imports

Baghdad – Mail

Oil prices experienced a decline today, Wednesday, as investors weighed the implications of potential U.S. tariffs on imports from Canada and Mexico, largely overlooking the increase in U.S. weekly crude stock levels.

Brent crude futures fell by 0.22% to $77.32 per barrel.

Simultaneously, U.S. West Texas Intermediate (WTI) crude futures also decreased by 0.22%, settling at $73.61 per barrel. Earlier this week, prices hit the lowest levels observed in several weeks, fueled by heightened interest in the economical artificial intelligence model developed by the Chinese startup “Deep Cick.” This development raised concerns regarding energy demand for data center operations, which adversely impacted the energy sector overall. Additionally, lackluster economic data from China has contributed to an increasingly pessimistic outlook on demand expectations.

On Tuesday, the White House indicated that U.S. President Donald Trump remains committed to implementing a 25% tariff on imports from Canada and Mexico by Saturday, while also considering new fees on China.

Although Trump refrained from implementing the anticipated tariffs on Monday, he confirmed that he was deliberating a 25% fee on imports from Canada and Mexico starting February 1. This move is attributed to concerns over the influx of illegal immigration and fentanyl across the southern border.

The potential impact of any new tariffs on U.S. oil imports from Canada and Mexico remains uncertain. In 2023, Canada supplied the United States with approximately 3.9 million barrels per day of oil, accounting for about half of the total U.S. oil imports for the year. In contrast, oil imports from Mexico reached 733,000 barrels per day, according to data from the U.S. Energy Information Administration.

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