Oil edged up as Trump delayed tariffs on Canada and Mexico. WTI settled above $66, ending a four-day losing streak, while Brent topped $69. Prices fluctuated amid concerns over trade wars affecting demand, though potential supply shifts supported WTI.Trump delayed tariffs on Mexico and Canada under USMCA, affecting energy products.
The White House estimates 62% of Canadian imports and half of Mexican goods remain tariffed, with energy at a 10% rate. WTI’s prompt spread narrowed to 36 cents, signaling looser markets, while Canadian heavy crude prices rose.
Oil futures have declined since mid-January due to trade tensions and OPEC+ plans to boost production in April.Brent futures entered oversold territory for the first time since September, suggesting the recent decline may be excessive.Oil has been falling as OPEC+ shifts strategy, though a surplus has yet to materialize, noted SEB AB’s chief commodities analyst, Bjarne Schieldrop.
Prices found support after Treasury Secretary Scott Bessent stated the US is ready to impose full sanctions on Russia to push for a Ukraine ceasefire. He also warned of shutting down Iran’s oil sector.
