Oil holds near one-week low amid uncertainty

Oil holds near one-week low amid uncertainty

Investors are cautiously watching US President Donald Trump’s next policies.

Photo: Reuters

The prices of oil held near a one-week low on Wednesday as the dollar rallied and traders closely watched U.S. inventories, the president’s proposed tariffs donald trump and the potential impact of the national energy emergency he declared on his first day in office.

During the morning, crude oil futures Brent fell 8 cents, or 0.1%, to $79.21 a barrel, while crude oil futures West Texas Intermediate of USA fell 20 cents, or 0.3%, to $75.63.

This causes Brent to fall for the fifth consecutive day, for the first time since September, and WTI to chain four declines in a row for the first time since November.

The market, attentive to Trump’s measures

“Potential sanctions under the new Trump administration remain unclear, and possible tariffs related to Canada and Mexico now appear to be at the forefront of traders’ uncertainties,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

Trump said his administration was discussing the possibility of imposing a 10% tariff on goods imported from China on February 1, the same day he previously said Mexico and Canada could face levies of around 25%.

He also promised tariffs on European imports, without providing further details, and new tariffs against Russia if the country does not reach an agreement to end its war in Ukraine.

“The oil market’s attention is slowly shifting away from US sanctions against Russia and towards President Trump’s potential trade policy,” ING analysts said, adding that the energy complex has come under pressure with the growing threat of tariffs.

Source: Ambito

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