Oil prices fell ahead of President-elect Donald Trump’s inauguration as markets braced for a period of uncertainty and turmoil for the start of his second term in the White House.
Brent crude oil fell to nearly $80, accelerating its decline after the Wall Street Journal reported that the president-elect will halt new tariffs before achieving them on his first day in office.
Traders are focused on the risk of disruption to supplies from Canada, the U.S.’s largest source of imports, after President Trump previously told Alberta’s premier that there would be no exceptions to any tariffs on crude oil. Ta.
Still, Trump is expected to issue a slew of executive orders on his first day in office as part of his plan to ramp up domestic energy production, including several hours after taking office, according to people familiar with the matter. This includes activating emergency powers within the next few days.
“The challenges will be detailed. We know there will be some form of tariffs, including in Canada and Mexico,” Amrita Sen, research director and co-founder of consultant Energy Aspects, told Bloomberg He spoke before a TV interview. Wall Street Journal report. “That certainly gave the market a little bit of a respite today.”
Oil prices rose at the start of the year as frigid weather in the northern hemisphere increased demand for heating and expanded U.S. sanctions on Russia’s oil industry prompted Asian customers to seek alternative supplies. Trading volumes may be lower on Monday due to the US federal holiday.
Additional sanctions against Russia have disrupted tanker markets, pushed up the price of Middle Eastern crude and widened the gap between Brent’s most recent contracts, known as the prompt spread. Speculators have increased their net bets on rising prices in global benchmarks, but the additions to short positions have also been modest.
Scott Bessent, President Trump’s nominee for Treasury secretary, said last week that he supports tougher measures targeting Russia’s oil industry, which would likely mean further turmoil. The president-elect’s choice to be his national security adviser had previously vowed to apply “maximum pressure” on Iran.
On Monday, Russian President Vladimir Putin said Russia was open to dialogue with the United States on Ukraine.
