Oil Prices Set for Second Consecutive Weekly Decline

Oil Prices Set for Second Consecutive Weekly Decline | OilPrice.com

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Breaking News:

ByIrina Slav– Jan 31, 2025, 1:37 AM CST

Crude oil prices looked set for their second consecutive weekly decline since the start of the year despite staging a partial recovery in anticipation of President Trump’s imposition of tariffs on the biggest crude suppliers to the U.S. this weekend.

At the time of writing, Brent crude was trading at $77.48 per barrel with West Texas Intermediate at $73.39 per barrel, both up from opening in Asia. Even with two consecutive weekly losses, crude oil is set for a monthly gain, with Reuters estimating that at 3.6% for Brent crude—the highest monthly gain since last June.

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Trump threatened he would slap Canada and Mexico with 25% tariffs from February 1 unless they address his grievances concerning illegal migration and fentanyl smuggling. Canada has threatened retaliatory moves including halting electricity exports south of the border.

Some believe that the tariff threats are nothing more than a tactic to prompt more desirable behavior from the governments in Ottawa and Mexico City while others consider the threat serious enough to prepare for—hence the partial recovery in oil prices as Trump contemplates whether to include crude oil imports in the tariff package or exclude them.

Exclusion looks unlikely if Trump’s recent comments are any indication. “We don’t need the products that they have,” he said earlier this week. “We have all the oil that you need.”

Canada exports about 4 million barrels of oil daily to the United States and Mexico exports over 700,000 barrels daily to its northern neighbor.

“Crude oil prices fluctuated as investors contemplate the likelihood of US tariffs alongside a flurry of executive orders and policy announcements,” ANZ analyst Daniel Hynes told Reuters.

“Sanctions on Russia, stopping purchases of Venezuelan oil and maximum pressure on Iran will increase the geopolitical risk premium on oil,” Hynes added, noting that Trump’s plan to fill the strategic petroleum reserve “to the brim” would make the supply situation tighter still.

By Irina Slav for Oilprice.com

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