Economy Update – Baghdad
In early trading today, oil prices exhibited minimal fluctuations as market participants anticipate the customs duties that U.S. President Donald Trump plans to impose on Mexico and Canada, the United States’ top crude oil suppliers.
Brent crude futures increased by 0.1 percent, rising to $76.71 per barrel as of 01:22 GMT.
Meanwhile, U.S. West Texas Intermediate (WTI) crude futures rose by 17 cents, or 0.2 percent, to reach $72.79 per barrel.
Notably, WTI futures settled at their lowest price of the year on Wednesday.
White House spokesperson Caroline Levat confirmed on Tuesday that President Trump intends to uphold his commitment to introduce customs duties on imports from Canada and Mexico, set to take effect this Saturday.
On another front, U.S. crude oil inventories rose by 3.46 million barrels last week, primarily driven by a 3.19 million barrel increase due to refinery operations being impacted by severe winter storms across the nation.
Attention is also turning toward the upcoming OPEC+ ministerial meeting scheduled for February 3, where oil-producing nations are set to engage in discussions regarding production levels.
Kazakhstan has announced that the OPEC+ coalition will address President Trump’s assertions aimed at boosting U.S. oil production, working toward a unified stance on this matter.
Furthermore, President Trump has publicly urged OPEC, including its leading member Saudi Arabia, to lower oil prices, suggesting that such actions could contribute to alleviating tensions related to the conflict in Ukraine.
The OPEC+ coalition is already planning to begin ramping up oil production from April onward, gradually phasing out prior discounts; however, this strategy has faced delays due to subdued demand.
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