Oil Prices Steady as U.S. Tariff Plans on Canada and Mexico Loom

Markets await clarity on President Trump's proposed tariffs, which could impact oil imports and refining costs, while OPEC+ prepares for key discussions.

U.S. President Donald Trump plans to impose 25% tariffs on oil imports from Canada and Mexico starting Saturday, with potential exemptions tied to border control measures on fentanyl.
Canada and Mexico are the top suppliers of crude oil to the U.S., accounting for over half of total imports in 2023, which could lead to increased costs for U.S. refiners reliant on heavier crude grades.
U.S. crude inventories rose by 3.46 million barrels last week, aligning with analyst expectations, while winter storms reduced demand and refinery utilization.
OPEC+ will meet on February 3 to discuss production strategies, including a planned output increase in April, and respond to U.S. calls for lower oil prices to address inflation and geopolitical goals like the Ukraine conflict.
Oil prices have fluctuated this week, with Brent crude trading near $76.50 per barrel and U.S. crude around $72.60, as markets weigh the impact of tariffs and broader economic uncertainties.