On January 21st, Jinshi Data reported that Trump announced a plan to increase the production of oil and natural gas in the United States, and stated that he is considering imposing a 25% tariff on goods imported from Canada and Mexico from February 1st, rather than immediately. Both of these are favorable to lower oil prices. American and Brent crude oil futures fell during the Asian session. However, in the future, imposing tariffs on Canadian crude oil may push the market higher. Federal Bank analyst Vivek Dhar said that almost all of Canada's oil exports are sold to the United States, usually at a discount to WTI. Therefore, the threat of U.S. tariffs increases the risk of higher costs for most of Canada's oil exports. In addition, Trump also promised to supplement strategic reserves, which may boost demand for U.S. crude oil and be favorable to oil prices.
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Two measures by Trump have put pressure on oil prices, but the oil market may rise in the future.
On January 21st, Jinshi Data reported that Trump announced a plan to increase the production of oil and natural gas in the United States, and stated that he is considering imposing a 25% tariff on goods imported from Canada and Mexico from February 1st, rather than immediately. Both of these are favorable to lower oil prices. American and Brent crude oil futures fell during the Asian session. However, in the future, imposing tariffs on Canadian crude oil may push the market higher. Federal Bank analyst Vivek Dhar said that almost all of Canada's oil exports are sold to the United States, usually at a discount to WTI. Therefore, the threat of U.S. tariffs increases the risk of higher costs for most of Canada's oil exports. In addition, Trump also promised to supplement strategic reserves, which may boost demand for U.S. crude oil and be favorable to oil prices.