US oil prices have jumped after President Donald Trump imposed tariffs on Canadian and Mexican energy imports. The tariffs, which range from 10% to 25%, are expected to disrupt crude supply and raise costs for US refineries. Canada and Mexico account for about a quarter of the oil processed by US refineries, making them key suppliers.
The tariffs have sparked fears of a global supply disruption, particularly in the heavier grades of crude that US refineries need for production. Energy analysts expect this to lead to higher oil prices, at least in the short term.
However, some analysts predict that oil prices may fall beyond the next quarter as the demand outlook deteriorates further and OPEC+ plans to unwind its production cuts.
The Organization of the Petroleum Exporting Countries (OPEC+) is unlikely to alter its existing plans to gradually raise output when it meets on Monday. Despite pressure from Trump to do so, sources say that OPEC+ is sticking to its original plan.
Oil prices have risen significantly, with US West Texas Intermediate crude futures increasing by 1.88% to $73.89 a barrel. Brent crude futures also rose, reaching $76.40 a barrel.
Source: https://www.reuters.com/markets/commodities/oil-prices-jump-after-trump-imposes-tariffs-canada-mexico-china-2025-02-02