Oil Price Movements in Response to U.S. Trade Policy Changes
Oil prices experienced an uptick on Friday, following remarks from U.S. President Donald Trump regarding potential negotiations with Canada on tariffs pertaining to Canadian oil production. Trump suggested that the new U.S. administration could consider reducing proposed tariffs from 25 percent to 10 percent.
Effective November, Trump indicated plans to impose taxes and tariffs on imports of oil and gas.
Market reaction saw North Sea Brent crude rising by $0.54 to $76.54 per barrel, while Texas light sweet crude increased by $0.73, settling at $73.48 per barrel.
Despite Friday’s gains, Brent crude prices saw a weekly decline of 2.1 percent, with Texas light sweet crude falling by 2.9 percent over the same period.
In discussions with reporters, Trump noted that he could potentially lower tariffs on Canadian oil imports, alleviating some concerns in an already volatile market.
Previously, Trump warned both Canada and Mexico of an impending 25 percent tariff on imports from these countries, leading to uncertainty among market participants.
John Kildov, founder of Agen Capital, commented, “The uncertainty surrounding Donald Trump’s policies has contributed to a lack of stability in the oil market.”
