Aerospace & DefenseCommodities

Oil Prices Steady as Investors Brace for Trump’s Customs Plans on Imports

2025-01-29T04:35:51+00:00

Oil prices saw a modest rebound on Wednesday, marking a recovery from recent lows. This positive movement occurred after the White House confirmed President Donald Trump’s imminent plans to impose tariffs on imports from Canada and Mexico.

Concerns over weak demand, exacerbated by disappointing economic indicators from China and abnormally high temperatures in certain regions, have tempered the gains made by oil prices.

Brent crude futures experienced a slight decline of 2 cents, settling at $77.49 per barrel. Meanwhile, US West Texas Intermediate crude futures edged up by 3 cents to reach $73.80.

In a recent address from Washington, President Trump expressed the need for lower oil prices and urged a reduction in global interest rates.

According to the White House, Trump is proceeding with plans to implement a 25% tariff on imports from Canada and Mexico this Saturday while deliberating on additional tariffs targeting China.

In Libya, local protests disrupted crude oil loading operations at the Sidra and Ras Lanuf ports on Tuesday, jeopardizing approximately 450,000 barrels per day of exports. However, tensions eased as the Libyan National Oil Corporation reported that export activities resumed as negotiations with protestors progressed.

In a notable development, January manufacturing activity in China, the world’s largest crude oil importer, unexpectedly contracted, placing additional downward pressure on oil prices. Furthermore, recent US sanctions on Russian oil exports are anticipated to further impact Chinese demand for crude oil.

In the United States, forecasts predict higher-than-normal temperatures for the week ahead, which may influence the demand for heating fuels. This follows a previously severe cold snap that had caused spikes in the prices of natural gas and diesel.

Shares: