Oil prices edged lower in Asian trading on Tuesday as investors evaluated President Donald Trump’s decision to delay new tariffs on Canada and Mexico while outlining plans to accelerate U.S. energy production.
Brent crude futures dropped 35 cents, or 0.44%, to $79.80 per barrel by 0705 GMT. West Texas Intermediate crude’s March contract fell 90 cents, or 1.16%, to $76.49 a barrel, with no settlement in the U.S. on Monday due to a public holiday. The February contract is set to expire on Tuesday.
Trump, who previously pledged to impose sweeping trade measures on his first day in office, announced investigations into unfair trade practices and hinted at 25% tariffs on Canadian and Mexican imports starting February 1. While the delayed implementation initially pressured oil prices, potential tariffs on Canadian crude could eventually support the market.
The announcement of a comprehensive plan to fast-track oil, gas, and power permitting heightened concerns over increased U.S. production, already at record levels. Trump also indicated the U.S. would likely halt oil purchases from Venezuela, where the U.S. is the second-largest buyer after China.
North Dakota’s crude output is estimated to have fallen between 125,000 and 150,000 barrels per day due to extreme cold weather, according to the state’s pipeline authority. Meanwhile, Trump’s promise to refill U.S. strategic reserves could drive future demand for American crude.
Market dynamics remain influenced by evolving trade and energy policies, as well as weather-related disruptions in U.S. oil production.
