NewsUS oil prices dip amid Trump's looming China tariffs

US oil prices dip amid Trump's looming China tariffs

Oil prices on the New York Mercantile Exchange in the USA are falling due to investors' concerns about tariffs on China announced by President Donald Trump, brokers report.

President of the USA Donald Trump
President of the USA Donald Trump
Images source: © Getty Images | Bloomberg

A barrel of West Texas Intermediate crude for March delivery costs $75.48 on the NYMEX in New York, down by 0.46%. Brent on ICE for March is priced at $79.03 a barrel, down by 0.33%.

Oil prices are falling

Concerns about tariffs on China are growing in the markets after U.S. President Donald Trump announced that the U.S. might impose tariffs starting next month.

Donald Trump said that his threats to impose 10% tariffs on all Chinese imports are still valid and indicated that they could be implemented as early as February.

We are talking about 10% tariffs for China, considering the fact that they are sending fentanyl to Mexico and Canada, Trump said on Tuesday at the White House.

Probably February 1 - that's the date we are considering, he added.

Comments by the U.S. President, which were made a day after his inauguration, suggest that the "relief tariff" for China may be short-lived.

On Monday, his first day in office, Trump held off on ordering tariffs directed specifically at China, while indicating that tariffs could also apply to Mexico and Canada starting February 1 at 25%.

Both countries are major exporters of goods to the USA, including crude oil processed by American refineries.

"Flood" of oil heading to the USA

A genuine "flood" of Canadian oil is already heading south through pipelines to the USA.

Susan Bell, an analyst at Rystad Energy, said Canadian oil suppliers are trying to "push" as much crude as possible to the USA before American tariffs are implemented.

Meanwhile, the U.S. President has announced that he will likely impose additional sanctions on Russia if Vladimir Putin refuses to negotiate ending the war in Ukraine.

This raises concerns in the markets about escalating the U.S. trade war on many fronts.

However, the oil markets' attention is slowly shifting from risks associated with Western sanctions on Russia to a more tangible risk: the escalation of trade tensions, says Warren Patterson, head of commodity strategy at ING Groep NV.

Related content

© essanews.com
·

Downloading, reproduction, storage, or any other use of content available on this website—regardless of its nature and form of expression (in particular, but not limited to verbal, verbal-musical, musical, audiovisual, audio, textual, graphic, and the data and information contained therein, databases and the data contained therein) and its form (e.g., literary, journalistic, scientific, cartographic, computer programs, visual arts, photographic)—requires prior and explicit consent from Wirtualna Polska Media Spółka Akcyjna, headquartered in Warsaw, the owner of this website, regardless of the method of exploration and the technique used (manual or automated, including the use of machine learning or artificial intelligence programs). The above restriction does not apply solely to facilitate their search by internet search engines and uses within contractual relations or permitted use as specified by applicable law.Detailed information regarding this notice can be found  here.