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US: Oil Prices Swing As Donald Trump Indicates Tariffs And Shifts In Energy Policy

Oil prices showed considerable volatility as markets responded to a series of pledges and executive orders from US President Donald Trump.

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US: Oil Prices Swing As Donald Trump Indicates Tariffs And Shifts In Energy Policy


Oil prices showed considerable volatility as markets responded to a series of pledges and executive orders from US President Donald Trump. The fluctuations were driven by the anticipation of tariffs on Canada and Mexico and the President’s focus on boosting domestic energy production.

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Volatile Oil Markets React to Executive Orders

Oil prices experienced swings between gains and losses, with Brent crude briefly trading above $80 per barrel after three days of losses. West Texas Intermediate (WTI) hovered near $77. The uncertainty arose from President Trump’s announcement of potential tariffs on crude producers from Canada and Mexico, set to take effect as early as next month. Additionally, Trump signed an executive order declaring a national energy emergency, signaling his commitment to increasing US energy output.

Trump’s proposed tariffs of up to 25% on crude oil from Canada and Mexico are expected to have significant implications for the global oil market. The tariffs stem from Trump’s desire to address trade imbalances and immigration concerns, as well as his broader strategy to secure the US’s economic interests. While these measures raised concerns among traders, Trump refrained from implementing tariffs on China, instead directing his administration to address unfair trade practices globally.

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US Strategic Oil Reserves and Other Energy Moves

In another significant move, President Trump announced plans to refill the US strategic oil reserve “right to the top,” after the reserve had hit its lowest levels since the 1980s. This effort is expected to provide further support to US oil prices and production. Additionally, Trump signed an order to withdraw the US from the Paris Climate Agreement, revoking offshore oil and gas leasing bans that had previously restricted drilling in US coastal waters.

Oil prices have also been influenced by broader geopolitical factors, such as sanctions on Russia, Iran, and Venezuela. These sanctions, particularly on Russia’s oil industry, have disrupted global oil flows and contributed to higher oil prices. Trump’s nominee for Treasury Secretary expressed support for increasing sanctions on Russia, which could lead to further disruptions in global oil markets.

The Role of the Houthis and Geopolitical Instability

In addition to US policy changes, geopolitical events have further impacted oil markets. The Houthis, a Yemen-based militia, announced they would halt their attacks on US and UK ships in the Red Sea following a ceasefire agreement between Israel and Hamas. This shift in the security situation is expected to ease tensions in global trade routes and could lead to a stabilization of oil prices.

The US oil market remains highly sensitive to political and geopolitical developments. The introduction of tariffs, plans to refill the strategic reserves, and other energy policies from President Trump have led to uncertainty in oil markets. Meanwhile, broader international issues, such as sanctions on oil-producing nations and maritime security concerns, will continue to influence the global oil landscape in the coming months.

Read More : Donald Trump Ends Birthright Citizenship: What Impact Will It Have On Indians In America?


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