Oil prices eased in Asian trading on Tuesday as President Donald Trump announced measures to boost U.S. energy production and delayed new tariffs. Brent crude futures slipped 0.14% to $80.04 per barrel, while West Texas Intermediate (WTI) crude for March fell $0.67 to $76.72. The February WTI contract expires Tuesday, with no U.S. market settlement on Jan. 20 due to a holiday.
Trump revealed a plan to expedite oil, gas, and power permitting, aiming to maximize U.S. energy output. He also postponed a potential 25% tariff on imports from Canada and Mexico until Feb. 1. This delay eased immediate price pressures, but future tariffs on Canadian crude could increase market volatility. Canadian oil exports, primarily sold to the U.S. at a discount to WTI, face potential cost hikes under U.S. sanctions, according to Commonwealth Bank analyst Vivek Dhar.
Additionally, Trump stated the U.S. might halt oil purchases from Venezuela, its second-largest supplier after China. This could further disrupt global supply chains. Meanwhile, his promise to refill strategic reserves may bolster demand for U.S. crude, supporting prices in the long term.
While new trade measures were not implemented immediately, Trump directed federal agencies to investigate unfair practices by trading partners. These developments add uncertainty to the global oil market as traders assess the impact of potential policy changes.
The shifting dynamics underscore the complex interplay of energy production, international trade, and geopolitical considerations influencing oil prices.